If you’ve been trading for a while, you know that identifying trend changes and reversals is a key to catching profitable moves. That’s where the 2-Line MACD Indicator comes in. This powerful custom tool for MT4 and MT5 is an improved version of the standard MACD oscillator, offering a clearer, more functional way to analyze the market. It gives you visually intuitive signals, helping you avoid bad trades and focus on high-probability setups. Whether you’re an intraday trader, swing trader, or long-term investor, this indicator can help you trade with more confidence.
2-Line MACD Indicator Description
So, what exactly is the 2-Line MACD indicator and what makes it so useful?
The 2-Line MACD is a technical indicator that generates trading signals based on moving averages and a volume histogram. It’s designed to be a great alternative to the standard MACD, providing more prospective entry points and a clearer picture of market momentum.
It comes in two versions (for MT4 and for MT5). While both aim to improve on the original, they have slightly different features:
- MACD-2 (for MT5): This version draws a colored cloud between the fast and slow EMAs. A change in the cloud’s color signals a potential entry. Its histogram has four colors: blue or light blue suggests buying, while red or pink suggests selling.
- MACD2Line (for MT4): This version plots two distinct EMA lines—a fast (blue) and a slow (red) one. A crossover between these lines generates a trading signal. Its histogram uses two colors: green for buying and red for selling. It also features a zero line to identify overbought and oversold zones.
Here’s why it’s a handy tool for your trading arsenal:
- Generates Clearer Signals: Thanks to its visually noticeable signals, you will always be aware of the most profitable trade entry points.
- Identifies Trend Changes: As an oscillator, it’s best used to spot when global and smaller trends are reversing.
- Great for All Traders: It can be a nifty complement to your trading system, whether you use swing, intraday, or long-term strategies.
- Provides Deeper Insight: Unlike the standard MACD, it divides the histogram volumes into distinctly bullish and bearish ones.
2-Line MACD Indicator Installation
1. Unzip the file you’ve downloaded.
2. Find the file that is called “MACD-2Line.ex4″/”macd-2.ex5″ and copy it.
3. Open your MT4/MT5.
4. Go to “File – Open Data Folder – MQL4/MQL5”.
5. Paste the file into the “Indicators” folder in MQL4/MQL5.
6. Restart your MT4/MT5.
Basic Trading Signals
BUY Signal:
- Look for bullish conditions to align.
- On MT4: The histogram volume is green, and the fast (blue) EMA has crossed above the slow (red) EMA.
- On MT5: The histogram volume is blue or light blue, and the EMA cloud confirms a bullish shift.
SELL Signal:
- Look for several bearish factors to align.
- On MT4: The histogram volume is red, the EMAs are in the overbought zone, and the fast EMA has crossed below the slow EMA.
- On MT5: The histogram volume is red or pink.
Always use a trendline to confirm the global trend direction. Do not take buy signals if the price is below a major downtrend line, and avoid sell signals if the price is above a major uptrend line.
My Conclusion on the 2-Line MACD Indicator
The 2-Line MACD indicator is a great alternative to the standard MACD that you will want to use in your trading. It offers clearer, more visually intuitive signals that help traders better understand market momentum and pinpoint potential trend reversals.
By combining it with basic technical analysis like trendlines, the 2-Line MACD can significantly improve your trade selection. With its easy integration into MT4 and MT5 and user-friendly features, it is a must-have tool for anyone serious about improving their trading performance.
P.S. Have problems with installation? Email me at olivermurphy@altraforex.com or support@altraforex.com
I would love to help!
P.P.S. Check out software by Altra Forex Group here
