Download the MACD 3 Color Indicator for MetaTrader 4 - Free - [Trading Finder]

The MACD 3 Color Oscillator is a commonly used technical analysis tool in MetaTrader 4. This tool significantly helps traders identify the strength and direction of price trends.

The MACD 3 Color Oscillator consists of two phases: positive and negative. The fluctuation of the signal line, along with the color change of the histogram in these two phases, determines whether the trend is bullish or bearish.

The color change and separation of the signal line from the histogram can provide a signal for entry or exit in trades.

MACD 3 Color Indicator Table

Bullish Trend Conditions

According to the price chart of the EUR/USD currency pair in the 4-hour timeframe, the phase shift of the signal line from negative to positive and the histogram color change from light purple to dark purple serve as factors indicating a trend reversal in the market, which can be signals for entering buy positions.

Bearish Trend Conditions

The price chart of Bitcoin (BTC) in the 1-hour timeframe shows the performance of the MACD 3 Color Indicator in indicating trend changes and issuing signals.

The chart shows that the signal line's phase shift from positive to negative, and the histogram color change from dark purple to light purple indicates a trend reversal and provides a sell signal.

Indicator Settings

• Chart Theme: Indicator theme settings;
• Fast MA Period: Fast moving average period set to 12;
• Slow MA Period: Slow moving average period set to 26;
• Signal Period: Simple moving average period set to 9;
• Line Width: Oscillator line thickness set to 3.

Summary

The MACD 3 Color Indicator is useful in MetaTrader 4, particularly for identifying trend direction and strength. This oscillator generates entry signals by utilizing color differences in the histogram and signal line fluctuations between positive and negative phases.

Due to its simplicity and clarity, the MACD 3 Color Indicator is suitable for all trading styles.