MACD Threshold Value Signal Indicator for Metatrader 5
MACD Threshold Value is a trading indicator built on the basis of the classic forex oscillator MACD. Its operation is based on determining the trend and thus searching for optimal points for opening positions.
The indicator is located in the lower window of the price chart and is a histogram that crosses level zero from top to bottom, or vice versa, from bottom to top. In addition to the histogram, there are two lines in the indicator window, at the intersection of which the confidence and accuracy of the trend being determined is determined. Trading using the indicator can be made with any currency pairs, as well as using any timeframe.
Since the MACD Threshold Value indicator is an updated and improved version of the MACD oscillator, it is possible that its work will also be better and more convenient, since the indicator has advanced settings. This allows to adapt the indicator for own convenient trading.
- -Period for Fast average calculation - the calculation period produced by the fast moving average, which is applied during an uptrend in the market. The default value is 12.
- -Period for Slow average calculation - the period of bars to which the calculation of the slow moving average will be applied when determining a downtrend. The default value is 26.
- -Period for their difference averaging - the average difference between the calculation period of both moving averages. The default value is 9.
- -Type of price - type of price to which the calculation will be applied. By default, it is set to Close price.
- -Absolute value (modulus) - absolute value of the threshold period, upon crossing of which the signal will be sent. The default value is 0.001
- -Sound name - the name of the indicator notification sound that will be played after a combination of certain conditions. The default value is alert2.waw.
- -Repeats on the same bar - repeats the generated notification several times on the same bar. The default value is 3.
- -Pause/in second - Pause between played alarm notifications in seconds. The default value is 3.
- -Email and notifications only once per bar-parameter responsible for receiving a notification to e-mail or mobile device only once, if True is selected. The default value is True.
- -Send an email option, if set to True, sends a signal to the previously specified email. The default value is True.
- -Send push notification, if set to True, sends to the previously specified mobile device. Default is True.
In the indicator parameters, in addition to level 0, additional levels can be added, at the intersection of which a signal will be generated. The optimal width and color scheme of the indicator can also be selected.
Many parameters in the settings of the MACD Threshold Value indicator are responsible for playing notifications when a signal is detected. In the settings, it can be specified not only the place where the notification was sent, but also the number of its playback, as well as the time between the signal playback period. Therefore, it will be very easy to determine signals using the indicator which allows its use even by beginners.
Signals for Buy trades:
- -The histogram of the indicator is above its level 0, that is, it is going up.
- - The histogram must necessarily cross the threshold, that is, be above it.
- -The signal line of the indicator also crosses the threshold and is slightly above the histogram.
If all of the above conditions are met, then a long position can be opened. However, a trade should not be opened if at least one condition does not match, this may lead to no profit from the trade.
Signals for Sell trades:
- - The indicator bars are directed from top to bottom, crossing level 0.
- - The histogram has crossed the threshold and is below it. This is an important condition.
- - The signal line also crosses the threshold and falls just below the histogram itself.
If all conditions match, a short position may be opened. In this case, one or more conditions may not match, in which case the trade should not be opened.
MACD Threshold Value is a versatile and very effective indicator that is suitable to be used on its own or in combination with other indicators. Its signals are determined very quickly, so a profitable trade can be made in a short period of time. However, in order to fully master the trading skills with this indicator, it is recommended the first time to use a demo account.