Anyone who is an FX trader has probably used the MACD at least once. The Moving Average Convergence Divergence, or MACD for short, is an indicator that can be called a classic trading tool.
It is not only simple, but it also generates very easy entry points. This “MTF_MACD” that we are introducing in this article is a variation of the MACD in an advanced form.
Example of displaying a 4-hour MACD on the EuroDollar 1-hour chart
If you use this “MTF_MACD”, you can display the MACD of other timeframes. However, please be aware that displaying the MACD of the lower timeframe will not work properly. For example, displaying a 1-hour MACD on a 4-hour chart will not work.
Tips for use:
1. It is a good idea to place an order when the MACDs of the various timeframes all show the same signal.
For example, in the 30-minute chart example below, the 1-hour, 4-hour and daily MACDs are all giving a bearish signal. If you’ve put a sell order at this timing, you would have won and traded a high probability trade.
2. You may use this indicator to judge the trend.
For example, if the MACD value of various time frames is 0 or more, you can see that a strong trend occurs over various time frames.
- TimeFrame - The timeframe used for indicator calculation
- FastEMA - The period used for fast MA calculation
- SlowEMA - The period used for slow MA calculation
- SignalSMA - The period used for signal calculation
- applied_price - The price used for indicator calculation
Download the "MTF_MACD" indicator from the button below
Tip: Can’t open the downloaded archive file (ZIP or RAR)?
Do you need help with installing this indicator into MT4 for Windows or Mac OS? Our guide HERE will help you.