MACD on MT4 platforms,how do i use the properly

Age : 38 Joined : 09 Jan 2008 Posts : 3 Location : warri

helo,traders in the house,i've been having issues on this macd indicator of a thing on my forex platform scratch

.though i was initially on www.fxsol.com,where they have the normal 2 red and blue lines on their macd indicator, my present forex broker has only one macd line in their mt4 based platform.how do i use it properly to check price cherry

Joined : 23 Dec 2007 Posts : 235 Location : Nigeria

Helloo there, dracklee,
The moving average convergence/divergence-MACD- is a momentum oscillator develpoed by Gerald Appel in the early 70's. Flunctuations in prices are reflected in MACD; if there's a sudden increase in price, the MACD will move upward. It flunctuates above and below a neutral 0.0 line.If MACD is above the zero line, it is bullish. If it is below the zero line, it is bearish.
MACD passing through the zero line successfully anticipates the begining of a strong trend. The crossing of the fast line (lighter) above the signal line (darker) is a buy signal. and it also measures the divergence, or convergence, of a shorter moving average with a longer one.

MACD respects zero and crosses to above its signal line.
Signals
Bull Signals
When MACD crosses to above zero
Bear signals
When MACD crosses to below zero

On Mt4 platforms that was referred to, we only see the red line and MACD Histogram. By improvising and tweaking the interpretation of the MACD, we notice that when MACD Histogram crosses the red line to the upside, it suggests a buy signal.
When MACD Histogram crosses the red line to the downside, it suggests a sell signal.