What is the MACD Double Indicator for MT4

The MACD (Moving Average Convergence Divergence) Double Indicator is a technical analysis tool that combines two exponential moving averages (EMAs) with the MACD line and the signal line to identify potential buy and sell signals in a financial asset.

MACD Double Indicator

Download free MACD Double Indicator

The MACD line is calculated by subtracting the 26-period EMA from the 12-period EMA. The signal line is a 9-period EMA of the MACD line. When the MACD line crosses above the signal line, it is seen as a bullish signal and may indicate that the asset’s price is likely to rise. Conversely, when the MACD line crosses below the signal line, it is seen as a bearish signal and may indicate that the asset’s price is likely to fall.

How to use MACD Double Indicator for MT4

The MACD Double Indicator is often used in conjunction with other technical analysis tools, such as support and resistance levels and chart patterns, to confirm trading signals and make more informed decisions about when to buy and sell.

The MACD Double Indicator is available on the MetaTrader 4 (MT4) platform, which is a popular trading platform for forex and other financial markets. To access the MACD Double Indicator on MT4, you will need to add it to your chart by selecting it from the list of available indicators in the platform’s customization menu. Once added, you can customize the indicator’s settings to suit your trading style and preferences.

MACD Double Indicator MT4 trading settings

The MACD Double Indicator on the MetaTrader 4 (MT4) platform has a number of adjustable settings that you can customize to suit your trading style and preferences. These settings include:

  1. Periods: The number of periods used to calculate the 12-period and 26-period exponential moving averages (EMAs) as well as the signal line. The default settings are 12, 26, and 9, respectively.
  2. MACD method: The type of calculation used to create the MACD line. The default setting is the “Exponential” method, which uses exponential moving averages to calculate the MACD line.
  3. Applied price: The type of price data used to calculate the EMAs and MACD line. The default setting is the “Close” price, which uses the closing price of the asset to calculate the indicator.
  4. Color: The color of the MACD line and signal line as they appear on the chart. The default setting is red for the MACD line and blue for the signal line.
  5. Style: The style of the MACD line and signal line as they appear on the chart. The default setting is a solid line.
  6. Width: The width of the MACD line and signal line as they appear on the chart. The default setting is 1.
  7. Level: The level at which the MACD line and signal line are displayed on the chart. The default setting is 0.

To adjust these settings on the MT4 platform, you will need to right-click on the MACD Double Indicator on your chart and select “Properties” from the context menu. This will open a window where you can adjust the indicator’s settings as desired. It is important to note that the default settings may not be optimal for all trading strategies, and you may need to experiment with different settings to find the ones that work best for you.

MACD Double Indicator Advantages

The MACD Double Indicator is a popular technical analysis tool that has a number of advantages for traders and investors. Some of the main advantages of the MACD Double Indicator include:

  1. Identifies trends: The MACD Double Indicator can help traders identify the direction and strength of a trend by comparing the relationship between the MACD line and the signal line. When the MACD line is above the signal line, it may indicate an uptrend, and when the MACD line is below the signal line, it may indicate a downtrend.
  2. Identifies potential buy and sell signals: The MACD Double Indicator can also help traders identify potential buy and sell signals by analyzing the crossover of the MACD line and the signal line. When the MACD line crosses above the signal line, it may be a bullish signal and a potential opportunity to buy, and when the MACD line crosses below the signal line, it may be a bearish signal and a potential opportunity to sell.
  3. Can be used in conjunction with other indicators: The MACD Double Indicator can be used in conjunction with other technical analysis tools, such as support and resistance levels and chart patterns, to confirm trading signals and make more informed decisions about when to buy and sell.
  4. Easy to interpret: The MACD Double Indicator is relatively easy to interpret, even for traders who are new to technical analysis. Its clear visual representation of the relationship between the MACD line and the signal line makes it straightforward to identify potential buy and sell signals.
  5. Widely available: The MACD Double Indicator is widely available on many trading platforms, including the popular MetaTrader 4 (MT4) platform, making it easy for traders to access and use in their analysis.

MACD Double Indicator Disadvantage

Like any technical analysis tool, the MACD Double Indicator has its limitations and may not be suitable for all traders and investment strategies. Some of the potential disadvantages of the MACD Double Indicator include:

  1. Lags behind price action: The MACD Double Indicator is based on moving averages, which can lag behind the current price action. This means that the indicator may not provide timely signals and may generate false signals when the market is trending or volatile.
  2. May generate false signals: The MACD Double Indicator may generate false signals when the market is choppy or range-bound, as the indicator’s buy and sell signals may not be confirmed by the underlying price action.
  3. May not work in all market conditions: The MACD Double Indicator may not work well in all market conditions, particularly in markets with low liquidity or high volatility. In these conditions, the indicator may generate many false signals or fail to provide any useful signals at all.
  4. May be subject to interpretation: The MACD Double Indicator is subject to interpretation, as different traders may have different criteria for what constitutes a valid buy or sell signal. This can lead to inconsistency in the use of the indicator and may make it difficult to determine the best course of action based on the indicator’s signals.

It is important to note that the MACD Double Indicator should not be used in isolation, but rather as part of a broader analysis and trading strategy that takes into account a wide range of market conditions and factors.

MD Indicator installation on MT4

To install the MACD Double Indicator on the MetaTrader 4 (MT4) platform, follow these steps:

  1. Open the MT4 platform and select the chart for the financial asset you want to analyze.
  2. Right-click on the chart and select “Indicators” from the context menu.
  3. From the list of available indicators, select “Moving Average” and then “MACD”.
  4. A window will appear with the indicator’s default settings. You can customize these settings as desired, or leave them as is.
  5. Click “OK” to add the MACD Double Indicator to your chart.
  6. The indicator will be displayed on your chart, and you can use it to analyze the asset’s price action and identify potential buy and sell signals.

It is important to note that the default settings for the MACD Double Indicator may not be optimal for all trading strategies, and you may need to experiment with different settings to find the ones that work best for you. To adjust the indicator’s settings, you will need to right-click on the indicator on your chart and select “Properties” from the context menu. This will open a window where you can adjust the indicator’s settings as desired.

MACD Double Indicator mt4

MACD Double Indicator mt4 free download

Conclusion

In conclusion, the MACD Double Indicator is a technical analysis tool that combines two exponential moving averages (EMAs) with the MACD line and signal line to identify potential buy and sell signals in a financial asset. The MACD line is calculated by subtracting the 26-period EMA from the 12-period EMA, and the signal line is a 9-period EMA of the MACD line. When the MACD line crosses

above the signal line, it is seen as a bullish signal, and when it crosses below the signal line, it is seen as a bearish signal.

The MACD Double Indicator has a number of advantages, including its ability to identify trends, generate potential buy and sell signals, and be used in conjunction with other technical analysis tools. However, it also has some limitations, such as its tendency to lag behind the current price action and generate false signals in choppy or range-bound markets.

To use the MACD Double Indicator on the MetaTrader 4 (MT4) platform, you will need to add it to your chart by selecting it from the list of available indicators in the platform’s customization menu. You can then customize the indicator’s settings to suit your trading style and preferences. It is important to note that the MACD Double Indicator should not be used in isolation, but rather as part of a broader analysis and trading strategy that takes into account a wide range of market conditions and factors.

Author: Dominic Walsh

I am a highly regarded trader, author & coach with over 16 years of experience trading financial markets. Today I am recognized by many as a forex strategy developer. After starting blogging in 2014, I became one of the world's most widely followed forex trading coaches, with a monthly readership of more than 40,000 traders! Make sure to follow me on social media: Instagram | Facebook | Linkedin | Youtube| Twitter | Pinterest | Medium | Telegram Channel | Quora | Reddit

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