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In this article, we will show MACD which has two lines and offers better visual representation. First, you can download it for free and enjoy our article.
Download MACD Indicator MT4 With Two Lines
Download MACD MT4 indicator with 2 lines
MACD Indicator MT4 With Two Lines- Understanding And How To Trade
As you know, the MACD indicator in MetaTrader has only a histogram and one line instead of two, as we can see in theory. This article will offer you to download the MACD indicator with two lines, and we will talk about this indicator.
What is MACD two lines indicator?
The best MACD indicator for MT4 is an indicator with two lines and one histogram. This indicator visually better represents the trend change and enables traders to understand the cycles of changing bullish and bearish trends. For example, indicator MACD two lines show that momentum increases if the two moving averages diverge, and momentum weakens if they converge.
After our MACD with two lines MT4 indicator, the best platform for market analysis (outside MT4) is TrendSpider (see platform) MACD with two lines indicator. See below in action:
Above the chart is presented the TrendSpider MACD tool.
What does the MACD two lines indicator draw?
MACD indicator MT4 with two lines draws Exponential Moving Average and volume histogram in a separate chart window. Traders can see histograms and two MACD lines used as crossover trading signals.
The world of trading has grown exponentially with the internet and online trading platforms. Nowadays, there are many indicators, yet MACD is still one of the most popular among experienced traders.
What Is The MACD Indicator?
MACD or Moving Average Convergence Divergence represents an oscillator that measures price momentum, and traders usually use it as a signal for entry or exit positions. MACD can be used in a range, bearish or bullish market. Gerald Appel developed this indicator during the 1970s.
To learn about the best MACD settings, visit our page.
When you first look at the MACD indicator, it cannot be obvious. This is understandable as it is presented in another window with bars and two lines. Before you can trade the MACD, you will need to learn what those lines and bars represent.
The bars and lines in the MACD indicator are derived from its numerical settings. The “standard” setting is 12,26,9. These numbers are derived from the old days in which trading sessions were six days a week. The standard MACD settings represented price movements of one and a half, two, and four weeks. These days, typical trading sessions are now five days a week. Hence, adjusting the “standard” setting can adapt to today’s trading environment. And yet, it’s also possible to use the “standard” settings as it’s most commonly used by traders, which is usually a good thing in trading. The MACD indicator mt4 with two lines and bars is then produced from these settings.
First, focus on the two lines that typically oscillate within the confines of the indicator window. MACD is an EMA with a twist. Plenty of traders use two EMA’s as part of their trading. Usually, there’s the fast one and the slow one. Using two EMAs aims to identify the overall trend better or even signal entry or exit.
The MACD builds upon this concept as it still incorporates a slow and fast line. However, it has a unique twist. Do you remember the setting mentioned above (12,26,9)? The fast line is produced by subtracting the 26 EMA with the 12 EMA. For the slow line, it merely uses the value of the 9 EMA.
To produce the bars, take note of the 9 EMA, which is considered the slow line. Next, observe how the fast line goes up and down the slow line. Finally, imagine that you stretch the 9 EMA into a straight line; while doing so, the fast line will also ‘contort’ along with it. Then represent that contorted line in the form of bars, and that’s how you get the iconic MACD bars, also known as histograms. Now that you understand how the MACD is produced, you can better understand how to trade.
In our article, you can read more about the best MACD settings for intraday trading.
Would you please download Macd indicator mt4 two lines: 2 line MACD indicator for MT4 free download?
Metaquotes create this indicator, and it is an essential trading indicator.
MACD indicator with two lines Input
This version has nice colors. You can edit in input :
Keep in mind that the MACD is not a magic bullet at the end of the day. It is just a tool that will help you with your trading. This means that using this tool is up to you, and there is no right or wrong way of using this indicator. However, this article will show you the primary methods of trading the two MACD lines and other strategies.
MACD crossover MT4 signal
MACD two lines indicator can be used to generate MACD crossover. You use the fast and slow line crossovers to signal entries and exits. For example, if you want to go long, you wait for the fast line to come from below, crossover to the top of the slow line, and enter a “buy” position. To exit, wait for the fast line to crossover towards the bottom.
This is perhaps the most basic way of trading the MACD, but here’s the thing.
Another valuable attribute of the MACD indicator is its ability to gauge the price’s momentum, which is why this indicator is standard among momentum traders. To better understand the price momentum, you’d want to refer to the MACD bars.
The longer the bar, the more momentum the price has. What’s neat about this is that you can compare the current bar’s momentum and refer it to the previous bar or bars for easily eyeballing momentum strength or weakness. For example, if the current bar is longer than the last bar and the previous bar is longer than the one that precedes it, you can say that the price is gaining momentum. This indicates that this momentum trend will continue until it shows signs of weakness. If the opposite happens and the bar gets shorter and shorter, you can say the price momentum is weaker. But the MACD indicator has another attribute that sets it apart from other indicators: divergence and convergence.
The longer the bar, the more momentum the price has. What’s neat about this is that you can compare the current bar’s momentum and refer it to the previous bar or bars for easily eyeballing momentum strength or weakness. For example, if the current bar is longer than the last bar and the previous bar is longer than the one that precedes it, you can say that the price is gaining momentum. This indicates that this momentum trend will continue until it shows signs of weakness. If the opposite happens and the bar gets shorter and shorter, you can say the price momentum is weaker. But the MACD indicator has another attribute that sets it apart from other indicators: divergence and convergence.
The easy way of understanding convergence and divergence is by referring to the price trend and the histogram. For example, the price swing high of the short-term trend is going higher and higher. However, if you look at the peaks of the histogram, it’s going lower and lower. This is what is called a divergence.
On the other hand, if the price swing lows of the short-term trend are going lower and lower, but the troughs of the histogram are going higher and higher, then this is described as convergence.
The appearance of divergence and convergence may signal that a possible trend change is coming. Thus, you may want to take positions counter to the current short-term trend. Entering a position before a price move is usually considered a “leading” strategy instead of a “lagging” strategy.
Conclusion
The MACD is an indicator that can trace its roots back to before computers and online trading became popular. You can say that it’s a valuable tool as it has stood the test of time. The MACD indicator’s beauty can be used as a “lagging” indicator and a “leading” indicator. Such an attribute sets it apart from most of the technical indicators out there.
