Custom MACD Indicator for MetaTrader 5 – [Trading Finder]

The Custom MACD Indicator is a technical analysis tool used to evaluate the strength, direction, and momentum of a price trend.

This indicator is based on the difference between two Exponential Moving Averages (EMAs):

• The MACD line, typically shown in blue, represents the distance between two EMAs with different periods;
• The Signal line, generally displayed in red, is a moving average of the MACD line.

Custom MACD Specifications Table

The key specifications of the Custom MACD indicator are summarized in the table below.

Uptrend Conditions

On the BTCUSD chart, the occurrence of a bullish crossover in the MACD indicator suggests increased buying momentum and the potential beginning of an uptrend.

In this scenario, the MACD line crosses the Signal line from below, which is typically interpreted as a buy signal.

Downtrend Conditions

The image below clearly illustrates a bearish trend in the EUR/USD currency pair chart. Here, the MACD line crosses below the Signal line, forming a bearish crossover.

This crossover is commonly viewed as a sign of weakening buyer strength and may indicate the start of a corrective phase or downtrend.

Indicator Settings

The configurable parameters in the Custom MACD Indicator are 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 is a powerful technical tool that, by combining exponential moving averages, offers high precision in identifying trends, divergences, and trade signals.

It is a versatile tool suitable for all financial markets and time frames.