3 Color MACD

3 Color MACD Indicator
3 Color MACD Histogram Indicator for MT4 Best forex trading indicator with MACD lines and Histogram. Shows BULLISH, BEARISH trends.

CATEGORIES: TREND, MT4, SIGNAL, OSCILLATOR
Updated on: 26.10.2023

Forex traders consider the 3 Color MACD Indicator for MT4 is an advanced version of the standard MetaTrader MACD indicator. Because, the indicator simultaneously displays the MACD signal line cross-over and the MACD histogram. Technical forex traders can use the MACD histogram to get early trading signals and reversal signals. While also being able to get trading signals from the MACD signal line cross over and Zero line cross overs. As a result, the 3 color MACD indicator for MT4 proves to be an excellent indicator for most technical trading strategies.

Forex traders can use the indicator in multiple ways to get BULLISH and BEARISH trend changes and also BUY and SELL signals from the cross-overs. As a result, it is beneficial for new forex traders. On the other hand, advanced technical traders can use it to trade in more versatile trading strategy. Additionally, forex traders can download as free and install. The 3 MACD indicator can be applied to any chart time frame and is a non-repaint indicator.

3 Color MACD Indicator Trading Signals

The above GBPUSD H4 chart shows the 3 Color MACD Indicator for MT4 in action. The histogram shows the BULLISH trend in BLUE color and the BEARISH trend in Majenta color. And, the signal line is plotted in Lime Green color.

Forex traders can use the indicator to trade in multiple methods. The classic method is to BUY when the signal line crosses over the zero lines to the upwards. Oppositely, traders can SELL upon a downward cross-over of the signal line and the Zero line. But this may provide late market entry and exit signals. To avoid this, technical forex traders can use the histogram to get early signals.

The histogram changes color to indicate a possible trend weakening and eventually resulting in a trend change. The distance between the histogram bars and the signal line helps the forex trader to gauge the price momentum. As a result, if the Histogram bars cross the signal line and the histogram bars retreat sharply, then a change in direction is expected. However, price changes and histogram color changes, and retreating near support or resistance lines or zones validate the trading signal further.

The 3 color MACD indicator for MT4 works on all time frames and for intraday and long-term technical trading strategies. Moreover, forex traders can use the indicator to identify classic divergence and convergences.