Custom MACD Indicator for MetaTrader 4 – [Trading Finder]

The Custom MACD indicator is one of the most widely used tools in technical analysis, designed to assess a price trend's strength, direction, and momentum. This indicator is made up of two main components:

• MACD Line (blue): Plotted based on the difference between moving averages
• Signal Line (red): Calculated as a moving average of the MACD line, used to identify market reversal points better

Custom MACD Specifications Table

The features of the Custom MACD indicator are shown in the table below.

Uptrend Conditions

The Dow Jones (DJI) price chart shows signs of a potential trend reversal toward a bullish direction.

This signal appears when the MACD line crosses above the Signal line—an area where the MACD line cuts the Signal line from below.

Such a crossover is typically considered a signal for price growth and defines a potential entry point for buy positions.

Downtrend Conditions

The image below shows a bearish GBP/USD currency pair chart trend. This occurs when the MACD line crosses below the Signal line. Such a crossover is often seen as a warning of a trend reversal and the beginning of a bearish phase.

Indicator Settings

The settings panel of the Custom MACD indicator is shown in the image below:

• Fast MA Period: Period of the fast-moving average
• Slow MA Period: Period of the slow-moving average
• Signal Period: Period of the signal line

Conclusion

The Custom MACD Indicator calculates the difference between two EMAs and offers customizable parameter settings. This enables traders to optimize and personalize the indicator's performance according to specific market conditions and trading strategies. It also provides clear entry and exit signals for trades.