MACD 3 Color Indicator MT4 Download - Free - [TFlab] - MetaTrader 4 Resources

The MACD 3 Color Oscillator is a commonly used technical analysis tool. This tool can significantly help traders identify the strength and direction of price trends.

This MT4 Currency Strength Indicator , consists of both positive and negative phases . Fluctuations in the signal line and changes in the color of the histogram during these two phases determine whether the trend is bullish or bearish.

Color changes and separation of signal lines and histograms can be done for entry or exit in trades.

MACD 3 color indicator table

MACD 3 color indicator at a glance

The MACD 3 Color indicator is similar to the classic MACD indicator in MetaTrader 4, but it differs in showing bullish and bearish trends using two different colors.

This color difference helps traders easily identify trend changes and find trading opportunities in the direction of the trend .

bullish trend conditions

According to the price chart of the EUR/USD currency pair on the 4-hour time frame, the phase change of the signal line from negative to positive and the change of the histogram color from light purple to dark purple are factors that indicate a reversal of the market trend and can serve as entry signals for buy positions .

Bearish trend conditions

Bitcoin (BTC) price chart on the 1-hour time frame shows Bitcoin’s performance. The MACD 3 Color indicator indicates and signals trend changes.

The chart shows the phase shift of the signal line from positive to negative, and the histogram color changes from dark purple to light purple indicating a trend reversal and provides the sell signal .

Indicator Settings

• Chart Theme: indicator theme setting;
• Fast MA Period: The fast moving average period is set to 12;
• Slow MA Period: The slow moving average period is set to 26;
• Signal Period: The simple moving average period is set to 9;
• Line Width: The oscillator line thickness is set to 3.

Summary

The MACD 3 color indicator is very useful in MetaTrader 4, especially in identifying trend direction and strength. This MT4 oscillator generates entry signals utilizing color differences to fluctuate between positive and negative phases in the histogram and signal lines.

The 3-color MACD indicator is suitable for all trading strategies due to its simplicity and clarity.