The MACD Color MT4 indicator is a colored version of the traditional MACD technical analysis indicator.
The colored version displays green and red histogram bars in a separate window below the activity chart.
- Green colored MACD bars indicate the trend is bullish
- Red colored MACD bars indicate the trend is bearish
Like all other oscillator type indicators, use it together with a trend following indicator for more accurate trading signals.
Good trend following indicators include simple moving averages, exponential moving averages, parabolic sar,…
The color MACD indicator deploys the following default settings: Fast EMA (12), Slow EMA (26) and Signal EMA (9).
Feel free to experiment with the MACD settings to suit your needs.
You can do so directly from the indicator’s inputs menu.
The EUR/USD H1 chart below displays the MACD Color forex indicator in action.
Basic Trading Signals
Signals from the MACD Color forex indicator are easy to interpret and goes as follows:
Buy Signal: Open buy order when the MACD color indicator displays a green histogram bar.
Sell Signal: Open sell order when the MACD color indicator displays a red histogram bar.
Trade Exit: Close the open trade when an opposite signal occurs, or use your own method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern
Customization options: Variable (FastEMA, SlowEMA, SignalSMA) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the macd-color-indicator.mq4 indicator into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)