The MACD 2 Line indicator draws moving averages (Exponential Moving Average, EMA) and volume histogram in a separate window of the chart.
The indicator has a zero line as well. The entire space above the line is an overbought zone, while that below it is an oversold zone.
The higher the moving averages are above the zero line, the more likely it’s that the trend will reverse downwards. If the EMA is below the zero line, the higher the odds of reversing the trend upwards.
No matter which trading approach you’re using – swing, intraday or long-term trading – the indicator can be a nifty complement to your trading system.
So, if you follow intraday and swing trading techniques and prefer smaller periods of EMA, the number of entry points will grow. Accordingly, the odds of opening profitable trades during reversals of short-term trends will be also higher.
If you prefer holding your positions open in the medium and long term, while increasing the periods of moving averages, you’ll get fewer entry points. But they can be more reliable!
Promotion:
By default, MT4 has the in-built MACD indicator, which is the predecessor of the MACD2Line that has a number of advantages over the standard MACD:
irst, the indicator draws two moving averages –the fast EMA and the slow EMA. Both these lines are of different colors: the fast one is blue, and the slow one is red. Entry signals are generated when the fast line crosses the slow one.
Second, the histogram volumes have two colors as well – red and green. If the volume color is red, only selling should be considered; if the volume color is green, you should consider buying only.
Promotion:
Third, the zero line of the indicator can serve as a more effective additional signal for trading rather than that of the standard MACD.
While the MACD has a common volume histogram and one EMA, the MACD 2 Line divides the indicator’s histogram volumes into bullish and bearish ones. And the second moving average provides a larger number of prospective entry points for trading.
The indicator has a zero line as well. The entire space above the line is an overbought zone, while that below it is an oversold zone.
The higher the moving averages are above the zero line, the more likely it’s that the trend will reverse downwards. If the EMA is below the zero line, the higher the odds of reversing the trend upwards.
No matter which trading approach you’re using – swing, intraday or long-term trading – the indicator can be a nifty complement to your trading system.
So, if you follow intraday and swing trading techniques and prefer smaller periods of EMA, the number of entry points will grow. Accordingly, the odds of opening profitable trades during reversals of short-term trends will be also higher.
If you prefer holding your positions open in the medium and long term, while increasing the periods of moving averages, you’ll get fewer entry points. But they can be more reliable!
Promotion:
2. Features MACD2Line
By default, MT4 has the in-built MACD indicator, which is the predecessor of the MACD2Line that has a number of advantages over the standard MACD:
irst, the indicator draws two moving averages –the fast EMA and the slow EMA. Both these lines are of different colors: the fast one is blue, and the slow one is red. Entry signals are generated when the fast line crosses the slow one.
Second, the histogram volumes have two colors as well – red and green. If the volume color is red, only selling should be considered; if the volume color is green, you should consider buying only.
Promotion:
Third, the zero line of the indicator can serve as a more effective additional signal for trading rather than that of the standard MACD.
While the MACD has a common volume histogram and one EMA, the MACD 2 Line divides the indicator’s histogram volumes into bullish and bearish ones. And the second moving average provides a larger number of prospective entry points for trading.
