Technical analysis is the key to success in forex trading. The majority of traders in forex trading are technical forex traders, outnumbering fundamental traders. Trading tools and indicators are mainly used by traders to predict price movements and to understand trends.MACD, Moving Average Convergence and Divergence indicators are among the most widely used and popular technical indicators among Forex traders.MACD 4C indicator is an advanced version of the traditional MACD indicator.MACD 4C displays MACD 4C in the form of a bar chart.It also displays MACD 4C in four colors to differentiate the strength of the trend.
For traditional MACD users, the MACD bar chart will be displayed in one color. MACD 4C uses four colors to visually identify the strength and direction of the trend. Traders can use it no matter what their trading platform is. It is an integral part of identifying the direction and strength of the market.
Trading Methodology of MACD 4C indicator for Metatrader 4
The indicator displays the histogram in 4 colors. If the histogram is below the zero line, the indicator displays the histogram in green or lime color. Below the zero line, the histogram will be displayed in red and maroon.
MACD 4C is powerful and can provide convergence and divergence. macd 4c is the best way to determine the beginning and end of a trend. When the indicator and the market price behave in opposite ways, it is called convergence or divergence. Divergence and convergence indicate that the trend may be changing. Forex technical traders use this information to determine the best entry point. Many forex traders combine the MACD 4C indicator with the RSI or stochastics to filter trade signals and create trade plans.
Conclusion
The MACD 4C indicator is a great tool for forex traders who use divergence or convergence trading strategies. The indicator is suitable for both novice and advanced traders and is available for free download. The indicator provides technical traders with a visual representation of the MACD histogram. This will be a valuable tool to add value to their trading. It is important to validate the signals and trade setups presented by the MACD 4CMT4 indicator with other chart-based technical indicators, or basic indicators.
