The MACD 4C MT4 Indicator is an advanced and much-refined version of the traditional MACD (Moving Average Convergence Divergence) Indicator, which is a widely popular tool among forex traders for its versatility and accuracy. Like the traditional MACD, the MACD 4C MT4 Indicator provides valuable information about price trends and momentum in forex markets. However, it incorporates additional features that make it more intuitive and easy to interpret, including a histogram presented in four distinct colors.
A key feature that sets the MACD 4C MT4 Indicator apart is the way it displays the MACD as a histogram. The histogram provides a visual representation of the divergence and convergence of moving averages, making it easier to see when a market’s momentum is changing.
The MACD 4C takes a step further by differentiating the histogram bars with four distinct colors: Green, Lime, Red, and Maroon. These colors are used to distinguish the strength of the market trend, based on whether the histogram is above or below the zero line.
When the histogram is above the zero line, it implies the market is in a bullish trend, and the MACD 4C Indicator depicts this using two different shades of green. The Lime color indicates a strong bullish trend, while the darker Green color indicates a weaker bullish trend. This differentiation is particularly helpful for traders as it can assist in identifying when the bullish momentum might be starting to fade, providing an early signal to potentially exit a long position.
Conversely, when the histogram is below the zero line, it indicates that the market is in a bearish trend. The darker Maroon color in the histogram represents a strong bearish trend, while the Red color represents a less potent bearish trend. The use of two shades of red aids in identifying when a bearish trend may be losing strength, providing an early warning that it may be time to exit a short position.
MACD 4C Indicator Installation
1. Unzip the archive you’ve downloaded.
2. Find the file that is called “macd4c.ex4” and copy it.
3. Open your MT4.
4. Go to “File – Open Data Folder – MQL4”.
5. Paste the file into the “Indicators” folder in MQL4.
6. Restart your MT4.
7. Attach the indicator to any chart where you’re going to open the trades.
After the installation, your MT4 trading chart will look like this:
How to trade with the MACD 4C Indicator
As mentioned before, trading signals of this indicator are simple and straightforward. You simply need to wait for the histogram to change the color.
BUY signal: histogram bars of MACD 4C Indicator change to green, confirming bullish momentum. Exit the position either at the opposite signal (when the histogram bars turn red) or when the bullish trend becomes weaker (histogram bars turn green instead of lime).
SELL signal: histogram bars of MACD 4C Indicator change to red, confirming bearish momentum. Exit the position either at the opposite signal (when the histogram bars turn green) or when the bearish trend becomes weaker (histogram bars turn red instead of maroon).
Examples of the trades:
My conclusion on the MACD 4C Indicator
In conclusion, the MACD 4C MT4 Indicator is an innovative tool that builds on the strengths of the traditional MACD Indicator. Its use of color-coded histograms provides traders with an intuitive and easy-to-understand tool for assessing market trends and their strength. When used in combination with other indicators, it can form a key part of a successful forex trading strategy. Whether you are a beginner or an experienced forex trader, the MACD 4C Indicator can be a tool in your technical analysis toolkit, helping you spot potential trading opportunities and manage risk more effectively.