MACD Tape Indicator is a short-term forex trading tool that is able to detect market trends and signals for the trades at the same time. This indicator also includes arrow signals for a better understanding of the trade signals. Since it is a scalping indicator, it suits well with M1 to M15 charts within the MT4 trading platforms.
MACD Tape Indicator is applicable to trading all kinds of forex currency pairs around the financial market. In addition, its simplicity of use allows traders with any level of experience to master it quite easily.
MACD Tape Indicator Overview
After the installation of the indicator at the MT4 platform, your trading chart will appear like the following image
MACD Tape Indicator: Explanation
The Indicator uses a dual-band of MACD in order to generate crossover signals which are used to define the market trends. It automatically changes the color whenever a crossover takes place.
You’ll also need to have a close look at the neutral/zero level of the indicator because the value of the indicator also plays a major role in identifying market trends.
The Indicator turns white carrying a positive value is a confirmation for buy entry and it turns red and negative in value is considered as the sell entry signal in line with the bearish market trend.
You can follow its arrow signals at the main chart window for a better understanding of the crossover signal direction.
Also Read: Trend Reversal MT4 Indicator
MACD Tape: Rules for Long Entry
- The Indicator turns white carrying the positive value
- An upward arrow appears below the price bar
- Buy triggers when both of the above conditions are met
- Set stop loss below the signaling arrow
- Exit long/take profit whenever the indicator turns red
MACD Tape: Rules for Short Entry
- The indicator turns red carrying the negative value
- A downward arrow appears above the price bar
- Sell triggers when both of the above conditions are met
- Set stop loss above the signaling arrow
- Exit short/take profit whenever the indicator turns white