MACD 2 Color Histogram Indicator MT5 Download – Free – [TradingFinder]

The MACD 2 Color Histogram indicator is designed to analyze price momentum strength and identify optimal entry points for trades.

This tool displays market momentum changes through histograms in two different colors; green bars indicate bullish trend strength, while red bars signal a weakening or strengthening bearish trend.

MACD 2 Color Histogram Oscillator Specifications Table

The specifications of the MACD 2 Color Histogram indicator are as follows.

MACD 2 Color Histogram Indicator at a Glance

In the MACD 2 Color Histogram oscillator, entry and exit signals are generated based on the crossover point of the MACD line with the signal line.

When the MACD line crosses above the signal line, this is considered a buy signal. Conversely, a downward crossover may indicate the start of a bearish trend.

Buy Trade

On the 30-minute chart of the cryptocurrency Cardano (ADA), when the MACD line crosses above the signal line, favorable conditions for entering a buy position are created.

Subsequently, the appearance of green histograms signals increasing bullish momentum and confirms the trend’s strength.

Sell Trade

Based on the GBP/USD 1-hour chart, the downward crossover of the MACD line with the signal line is considered a sell entry signal.

Furthermore, the continued formation of red histograms may indicate sustained selling pressure and the persistence of a bearish trend.

MACD 2 Color Histogram Indicator Settings

The MACD 2 Color Histogram oscillator settings are as follows:

• FAST_EMA: Fast moving average calculations
• SLOW_EMA: Slow-moving average calculations
• SIGNAL: Exponential moving average calculations for the signal line
• LOOKBACK_LIMIT: Lookback range limiter for display or calculation

Conclusion

The MACD 2 Color Histogram oscillator uses changes in histogram bar colors to indicate market momentum and show the likely direction of the trend (bullish or bearish).

The crossover point of the MACD line with the signal line plays a key role in identifying entry points for buy or sell trades.

Additionally, this tool offers customization; traders can adjust fast, slow, and other moving average parameters to match their strategies.