As we know from previous posts, one of the best MACD indicators for MT4 is an indicator with two lines and one histogram because this indicator visually better represents the change of the trend and enables traders to better understand the cycles of changing bullish and bearish trends. Traders can download MACD indicator MetaTrader 4 with two lines for free: 2 line MACD indicator for mt4 free download
On the other side, the awesome oscillator is a histogram trading indicator that compares the current 5 bars with the 34 bars of the wider trends, based on the Awesome oscillator formula. The Awesome Oscillator is created to detect the bearish or bullish trend.– Awesome oscillator mt4 download.
Using the combination of these two indicators, traders can use one common strategy – MACD and Awesome Oscillator Strategy.
MACD and Awesome Oscillator Strategy represents a entry position strategy where traders enter into a BUY position when a bullish MACD crossover is made and both histograms are bullish (green color) or SELL position when a bearish MACD crossover is made and both histograms are bearish (red color).
As we can see on the H1 chart for EURUSD at the moment when MACD two lines make bearish cross we have red arrow. At that moment both histograms show red downside color. This simple strategy you can combine with other price action patterns, divergence, etc.
Stop loss and target can be created using daily ATR (from half to 1 Daily ATR for an example), or using FIb. levels.
Two oscillators, such MACD and awesome oscillator, usually can be used in a situation when traders want to create additional filter, to avoid false breakout or overtrading.