Power Fuse Hybrid MT4 Indicator: The MACD and Bollinger Bands Superimposed
Forex Power Fuse indicator is a hybrid technical indicator, which is a combination of the MACD indicator and Bollinger bands superimposed on each other and displayed in a separate window under the price chart. The Power Fuse indicator can be used on any timeframe and currency pair. You can download it from the link below.
The implementation of the MACD indicator in Power Fuse is presented in the form of dots in blue, red and yellow:
- The blue dots in the Power Fuse window mean that the MACD indicator is growing;
- The red dots - MACD indicator is falling;
- Yellow dots appear when the MACD crosses the zero level.
Thus, the line consisting of circles of different colors in the Power Fuse indicator is inherently no different from MACD, but it is much more convenient to examine its marking, since the standard version of the oscillator is painted in a solid color, as a result of which, signals are poorly visible on it.
Bollinger Bands are represented here as light blue solid, and red or blue dashed lines.
The following parameters are available in the settings of this indicator:
- BandPeriod - this is the period of calculation of Bollinger bands;
- StdDevNumber - the number of standard deviations taken into account when building the BB channel;
- Fast, Slow, Smooth parameters are MACD settings.
For getting a signal to enter the market, it is necessary that the Bollinger bands narrowed, after which the MACD indicator, which is presented here as points, has crossed their upper or lower border:
- The dotted line of MACD indicator crossing the upper border of the Bollinger Bands - a buy signal;
- The dotted line of the MACD indicator crossing the lower border of the Bollinger Bands is a sell signal.
As well as in MACD, the Power Fuse line consisting of points can serve to search for divergence, and Bollinger Bands act as an additional filter.
The combination of several indicators is usually always much more effective, because it eliminates the shortcomings of each of the tools, giving a more accurate result of trades. The Power Fuse indicator is a successful symbiosis of two famous indicators, which is visualized in a simple and understandable form.
Look for examples of strategies built using this hybrid indicator in the Strategies section of our website.
Download the Power Fuse indicator for MT4 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.