MACD 4C Indicator
The best MACD based divergence indicator for MetaTrader 5. MACD 4C displays histogram with four colors in MT5
Most successful Forex traders use technical analysis. Technical forex traders outnumber fundamental traders and form the bulk of the trading community. Traders use trading tools and indicators mainly to understand the trend and anticipate the price movement of a trading instrument. One of the most commonly used and generally accepted technical indicators by forex traders is the MACD – an indicator of convergence and divergence of moving averages. The MACD 4C indicator is an extended version of the traditional MACD indicator. MACD 4C displays the MACD as a histogram. In addition, it displays the histogram in four different colors to distinguish the strength of the trend.
Traditional MACD users will find that the MACD histogram is displayed in one color. But MACD 4C uses four different colors to visually determine the strength of a trend. It is used by traders regardless of the trading platform. It is an integral part of determining the direction of the market and evaluating the strength of the market.
MACD 4C Indicator For MetaTrader 5 Trading Method
Above is the indicator trading method on the EURUSD H4 chart. The indicator displays a histogram in 4 different colors. The histogram is displayed in green and lime if the histogram is above the zero line. On the other hand, the histogram is displayed in red and maroon below the zero line.
The MACD 4C indicator is reliable and best at showing convergence and divergence. The best way to determine the beginning of the end of a trend is to apply MACD 4C. Convergence or divergence occurs when an indicator and market prices behave oppositely to each other. Since convergence and divergence signal the trader about a possible change in the momentum of the current trend. Forex technical traders use this convergence and divergence information with other technical indicators in combination to find the best entry points. For example, many forex traders use the MACD 4C indicator in combination with other indicators such as the RSI and the Stochastic indicator to filter trading signals or create a final trading plan.
MACD 4C is visually easy to identify divergence and convergence and is suitable for beginner traders. Experienced forex traders use this indicator to add confluence with multiple trading indicators. Moreover, the indicator is available for free download.
Conclusion
The MACD 4C indicator for MetaTrader 5 is a great tool for forex traders who use divergence and convergence trading methods. In addition, this technical indicator is free to download and is suitable for both beginners and experienced traders. Thus, the indicator will add value and support the technical trader with a visual representation of the MACD histogram. However, it is important to confirm trade setups and signals provided by the MACD 4C MT5 indicator, other chart based technical indicators or fundamental indicators.
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