Hey fellow traders! Today, I want to share a fantastic tool that can enhance your trading game: the wd.Range_MACD indicator for MetaTrader 5. Built upon the solid foundation of the built-in 'MACD.mq5' from the MT5 terminal, this indicator is a must-have in your trading toolkit.
The wd.Range_MACD dives deeper by calculating the range difference between the Signal line and the MACD, as well as the range distance between the last two MACD bars. This additional info can really help you pinpoint price cross-points, support and resistance levels, and even trend changes more effectively.
So, how does this indicator work?
When the MACD bar is trending upwards, it signals a bullish trend on your current timeframe. Conversely, if the MACD bar is on a downward slope, it suggests a bearish trend. But wait, if the MACD bar stays flat with no change from the previous bar (0 pips), it can indicate a new support or resistance level forming.
For instance, in the image above, the range difference between the Signal and MACD is 12 pips, while the range of the last two MACD bars is 0 pips. This tells us that the resistance/support level based on those last two MACD bars, in the H1 period, is at a price level of 1.2283. Meanwhile, the resistance/support level derived from the Signal-MACD will be at 1.2271 (1.2283 - 12 pips).
Important Note: The resistance and support levels calculated using the MACD range distance are dynamic and only apply to the same bar and timeframe. Once a new bar forms, those levels will reset.
In summary, the MACD is a widely respected technical indicator that assists traders in identifying potential trends, reversals, and price shifts. By incorporating the range difference information from the Signal-MACD and the last two MACD bars, the wd.Range_MACD indicator becomes a valuable leading tool, empowering you to make well-informed trading decisions. Just remember, it’s best to use it alongside other tools and analysis methods for maximum effectiveness.
Version history:
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v2.23 : initial release
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