MACD 3 Color Indicator MT5 Download - Free - [TFlab]

The MACD 3 Color Oscillator in the MetaTrader 5 platform helps identify price momentum strength and potential trend reversals.

This signal and forecast indicator includes a green signal line and two sets of light purple and dark purple histograms, which are used to identify trend continuations and reversals.

Changes in histogram color and oscillations in the signal line between the positive and negative phases can signal trade entry or exit points.

Indicator Specifications Table

Indicator at a Glance

The MACD 3 Color Oscillator is an updated version of the classic MACD indicator. The main difference lies in using two different colors to represent trend conditions.

Traders can use this practical tool to potentially predict the continuation or reversal of a trend across all markets, with a particular focus on the Forex market.

MACD 3 Color Indicator in an Uptrend

As shown in the 4-hour price chart of the NZD/USD currency pair, the change in the signal line phase and the histogram color shift from light purple to dark purple indicates a change in the trend direction.

This can serve as a potential signal to enter a buy (Long Position).

MACD 3 Color Indicator in a Downtrend

According to the 15-minute price chart of Solana (SOL), the histogram has shifted from dark purple to light purple, and the signal line has shifted from positive to negative. This suggests a downtrend, and these factors can signal a potential sell (Short Position) entry.

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 a useful tool for identifying the direction and strength of a trend. The oscillator provides trade entry and exit signals by using two colors for the histogram and a signal line that oscillates between positive and negative phases.

Additionally, traders can integrate this tool into various trading strategies with ease.