Applying The MACD Indicator With MetaTrader 4: Customizing The MACD
AAA
  1. Applying The MACD Indicator With MetaTrader 4: Introduction
  2. Applying The MACD Indicator With MetaTrader 4: Moving Average Convergence Divergence
  3. Applying The MACD Indicator With MetaTrader 4: Using The MACD
  4. Applying The MACD Indicator With MetaTrader 4: Customizing The MACD
  5. Applying The MACD Indicator With MetaTrader 4: Editing and Deleting The MACD
  6. Applying The MACD Indicator With MetaTrader 4: Conclusion

Applying The MACD Indicator With MetaTrader 4: Customizing The MACD

Regardless of the method used to attach the MACD to a price chart, a MACD window will appear. This window has four different tabs that allow traders to customize the appearance and function of the indicator:

  1. Parameters

  2. Colors

  3. Levels

  4. Visualization
The Parameters tab, shown in Figure 7, has several user-defined input options:

  • Fast EMA - the length of the fast (short) EMA. By default, this is set to 12.

  • Slow EMA - the length of the slow (long) EMA. By default, this is set to 26.

  • MACD SMA - the length of the signal line. By default, this is set to 9.

  • Apply to - the price that will be used in calculations. By default, this is set to the Close price.

  • Fixed Minimum and Fixed Maximum - to set minimum or maximum values for scaling the indicator.
Traders can customize the moving average lengths and specify the price on which to base calculations.
Figure 7: Traders can customize the moving average lengths and specify the price on which to base calculations.


The Colors tab, shown in Figure 8, is where traders can specify the color, line style and line thickness for the different parts of the MACD:

  • Main - the histogram

  • Signal - the moving average that appears on top of the histogram


Adjust the MACD\'s appearance in the Colors tab.
Figure 8: Adjust the MACD\'s appearance in the Colors tab.


The Levels tab, shown in Figure 9, is used to enter specifications to draw a channel around the zero line. This can help traders identify certain buy and sell signals, based on their own preferences.

Traders can draw a channel around the zero line by entering specs in the Levels tab.
Figure 9: Traders can draw a channel around the zero line by entering specs in the Levels tab.


To add Levels, click the Add button. Enter a numeric value and description for the first level, and click the Add button to create additional levels. In Figure 10, an upper value of 0.008 and a lower value of -0.008 were specified. The chart shows the channel in yellow; the channel can be used to represent thresholds by which traders can make trading decisions.

SEE: MACD Histogram Helps Determine Trend Changes

Traders can add a threshold channel to the MACD to help identify overbought and oversold conditions.
Figure 10: Traders can add a threshold channel (shown here in yellow) to the MACD to help identify overbought and oversold conditions.

Finally, the Visualization tab, shown in Figure 11, is used to specify the timeframe(s) to which the MACD indicator will be anchored. This can be done so that the indicator's settings (such as color or EMA length) will not have to be readjusted with each new timeframe.

The Visualization tab is where traders can specify to which time frame(s) the MACD will be attached.
Figure 11: The Visualization tab is where traders can specify to which time frame(s) the MACD will be attached.


For example, if the MACD's Fast EMA is set to 12 in the Parameters tab, certain time frames - such as Daily, H1 (one-hour) and H4 (four-hour) - could be selected in the Visualization tab to specify that these settings will appear only on these three time frames as traders toggle between the various charting intervals. To have the MACD (with the same inputs) appear on all charting intervals, click the box next to "All Timeframes." Applying The MACD Indicator With MetaTrader 4: Editing and Deleting The MACD

  1. Applying The MACD Indicator With MetaTrader 4: Introduction
  2. Applying The MACD Indicator With MetaTrader 4: Moving Average Convergence Divergence
  3. Applying The MACD Indicator With MetaTrader 4: Using The MACD
  4. Applying The MACD Indicator With MetaTrader 4: Customizing The MACD
  5. Applying The MACD Indicator With MetaTrader 4: Editing and Deleting The MACD
  6. Applying The MACD Indicator With MetaTrader 4: Conclusion
RELATED TERMS
  1. Exchange Traded Derivative

    A financial instrument whose value is based on the value of another ...
  2. Fintech

    Fintech is a portmanteau of financial technology that describes ...
  3. Indicator

    Indicators are statistics used to measure current conditions ...
  4. Intraday Momentum Index (IMI)

    A technical indicator that combines aspects of candlestick analysis ...
  5. Mass Index

    A form of technical analysis that looks at the range between ...
  6. Money Flow Index - MFI

    A momentum indicator that uses a stock’s price and volume to ...
  1. What are the advantages and disadvantages of using systematic sampling?

    Learn about the primary advantages and disadvantages of using a systematic sampling method when conducting research of a ...
  2. How effective is creating trade entries after spotting a Tri-Star pattern?

    Learn about the tri-star pattern and how to use corroborating reversal signals from other technical indicators to build effective ...
  3. How can an investor make money from a decline in the electronics sector?

    Learn how shrewd investors use speculation methods that include short selling, futures and put options to profit from declines ...
  4. How important are descending tops for a trading strategy?

    Find out what it means when a security or indicator is showing a descending tops pattern on a price chart, and what it says ...

You May Also Like

Related Tutorials
  1. Mutual Funds & ETFs

    Top ETFs And What They Track: A Tutorial

  2. Active Trading Fundamentals

    Introduction to Stock Trader Types

  3. Trading Strategies

    Guide to Pairs Trading

  4. Trading Systems & Software

    Beginner's Guide To J-Trader

  5. Trading Systems & Software

    Beginner's Guide To CQG Integrated Client Trading Platform

Trading Center