DAT MACD Indicator
DAT MACD indicator is an exemplary trend reversal detector available for the downtrend free of charge. It gives accurate buy and sell signals.
The DAT MACD indicator is a tool that combines smoothed Moving averages. In fact, it uses a triple exponential average (TRIX) to eliminate the market noise and give accurate trading signals. The indicator consists of slow and fast-moving averages to give traders a better view of the market behavior. The two lines oscillate around a zero line. They trigger a sell or buy alert when they cross above or below the zero line. The lines also give trading signals when they cross each other.
The indicator can also be used as a momentum indicator when. The positive values indicate increasing momentum, while negative values indicate a reducing momentum.
You can use the DAT MACD indicator to trade any currency pair. It also works well for short-term and long trading in all time frames.
How to Use the Dat MACD Indicator for MT4
Using the DAT MACD indicator is pretty much straightforward. Wait for the fast and slow-moving averages to cross each other and cross above the zero line.
Buy Signal
Buy when moving averages cross above the zero line. The fast-moving average should be trending above the slow-moving average. The lines turn green during the uptrend.
Sell Signal
Sell when the fast moving average crosses below the slow moving average. In addition, wait for the two lines to cross below the zero line. The lines turn red, signifying a downtrend.
Exit Strategy
Exit long positions when the fast line crosses below the slow-moving average. The moving average lines move below the zero line. Similarly, close short positions when the indicator moves below the zero line.
Trading Example
The chart shows price movement for the Australian dollar against the Canadian dollar. The indicator posts a sell signal when the fast moving average crosses below the slow moving average. In fact, the lines change to red. The moving averages drop and cross below the zero line. In fact, the price plunges significantly after this signal.
Similarly, the indicator posts a buy signal when the fast MA crosses above the slow MA. The indicator lines change to green and move above the zero line, indicating a buy signal.
Conclusion
The DAT MACD is a technical tool that signals a trend reversal and shows trade momentum. It gives the trading signals by showing the market direction. The indicator uses a smoothed moving average and hence gives more accurate signals. It is one indicator you need in your platform to enhance trading results.
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