MACD Momentum Indicator

MACD Momentum Indicator

MACD Momentum is one of the best momentum alert indicators for the MetaTrader 4 platform. Also, it is compatible with all sorts of timeframe charts and can be applied for both swinging and trend-following trading purposes. Also, you can add this indicator to any kind of MT4 trading strategy for enhancing your trading performance.

The MACD Momentum closely monitors the difference between simple and exponential moving averages of the price.

This indicator uses the MACD histogram bar for showing the difference between the moving averages. The positivity and the negativity of the histogram bar value determine the momentum of the price.

As a momentum indicator, MACD is admired by millions of active traders which include both newbies and expert professionals. Easy readability of signals, simple trading rules, and straightforward method of use are the main reasons behind the popularity of this MetaTrader indicator.

According to market experts, the MACD Momentum is an ideal indicator for forex scalping, intraday trading, and long-term price projections.

How to trade with the MACD Momentum MT4 indicator

The red-colored slope at the above chart represents a 9-day Signal SMA. On the other hand, the green and yellow color slope represent the 12 and 26 EMA respectively.

During a bullish momentum, the MACD histogram bar turns positive and the fast EMA turns above the signal SMA. For further confirmation, make sure the slow EMA moves below all the moving averages of the indicator.

For a bearish momentum confirmation, the fast EMA should be moving below both signal SMA and slow EMA. Besides, the MACD histogram bars also turn negative to show a bearish momentum alert.

As you can see, the EURUSD makes a massive price hike once the fast EMA moves above the signal SMA. The price kept moving higher until its histogram bar turns negative. If you’re on a buy order, close the entry once the bars turn negative.

For sell orders, the fast EMA should turn below both signal SMA and slow EMA. Enter short whenever the histogram bar shows up at the negative zone. Also, close the order or take profit when the bars turn positive.

Conclusion
MACD Momentum is one of the best momentum alert indicators for the MetaTrader 4 platform. Also, it is compatible with all sorts of timeframe charts and can be applied for both swinging and trend-following trading purposes. Also, you can add this indicator to any kind of MT4 trading strategy for enhancing your trading performance.

Furthermore, you can also apply this indicator for trading all types of Forex pairs, stock, cryptocurrencies, CFDs, and other financial products. This MT4 momentum indicator is highly recommended for beginners who require technical assistance in determining the right momentum of the market.