MACD with EMA Indicator

MACD with EMA Indicator

Forex BUY and SELL signals from the best MT4 MACD with EMA Indicator. Combine MACD with EMA. Accurate trend detector

The MACD with EMA Indicator combines two of the best moving averages indicator to present the direction of the trend. Like the traditional MACD and EMA, it paints a signal line and a histogram.

There are two EMAs, one fast and one slow, and the MACD signal line. The MACD plots a signal line by subtracting the two EMAs. The signal line gives a BUY or a SELL signal.

The MACD’s histogram tells the trading divergences. The histogram paints colored bars to reflect the overall market situation. For example, the histogram paints a green bar when there is a bullish momentum. Conversely, in bearish momentum, the histogram illustrates a red bar.

When looking for forex BUY/SELL signals, traders should apply the indicator on longer timeframes. It’s because the indicator produces fewer false signals on larger timeframes.

MACD with EMA Indicator BUY/SELL signals

The above GBP/USD daily chart shows BUY and SELL signals with the indicator.

Like the traditional MACD, we have to look at the histogram and the signal line for BUY and SELL signals. This indicator’s histogram act as a continuation and a reversal trend.

When the histogram plots green bars, it indicates an uptrend, and the trend is about to reverse. Here traders should exit the long positions and enter the short ones.

Conversely, when the histogram paints red bars, it signals a downward trend, and the uptrend will start soon. So, forex traders should exit their short positions and enter the long ones.

This indicator’s signal line also suggests BUY and SELL signals. When the bars go above the signal line, it indicates an uptrend. On the other hand, when the bars go below the signal line, it indicates a downtrend.

Does MACD use EMA or SMA?
The MACD with EMA indicator uses EMA as a signal line. The indicator uses two EMAs for BUY and SELL signals; a fast one and a slow one.

Are EMA and MACD the same?
No, the EMA plots a single line on the chart, whereas the MACD plots EMA along with the histogram on the chart.

Conclusion
The MACD with EMA Indicator is a must-have for any forex trader. It combines two of the most powerful technical indicator to generate BUY and SELL signals. In addition, the indicator is free to download, which makes it easily accessible for all forex traders.