Description This indicator is a powerful enhancement of the classic MACD trading strategy, inspired by the ideas shared in the YouTube video "BEST MACD Trading Strategy [86% Win Rate]". It combines the MACD (Moving Average Convergence Divergence) with the 200 EMA (Exponential Moving Average) to help traders identify high-probability trading opportunities in trending markets.
Key features of this indicator:
MACD on the Main Chart: The MACD Line and Signal Line are dynamically scaled and displayed directly on the main price chart, aligned with the center of the chart. Histogram Background: The MACD histogram is represented by background colors, with green indicating positive momentum and red indicating negative momentum. 200 EMA Integration: The 200 EMA is plotted as a key trend filter, ensuring trades are taken only in the direction of the prevailing trend. Dynamic Support and Stop Loss Levels: Automatically calculates dynamic support/resistance levels and stop-loss targets based on the 200 EMA and user-defined risk settings. Buy and Sell Signals: Visual alerts (arrows and labels) are plotted on the chart when specific MACD conditions align with the trend. This indicator works for all markets, including stocks, forex, crypto, and indices, and is highly customizable to suit different trading styles.
How to Use Identifying Buy and Sell Signals:
Buy (Long) Signal: MACD Line crosses above the Signal Line below the zero line. Current price is above the 200 EMA. Sell (Short) Signal: MACD Line crosses below the Signal Line above the zero line. Current price is below the 200 EMA. Dynamic Support and Stop Loss:
The indicator plots a support level (red line) and a target stop-win level (green line). These levels are dynamically calculated based on the 200 EMA and user-defined settings: Support Rate (%): Adjusts the support/resistance offset from the 200 EMA. Win Rate: Defines the risk-to-reward ratio for target profit levels. Filter Trades by Trend:
Only take trades in the direction of the trend, as defined by the 200 EMA: Price above 200 EMA: Focus on long (buy) opportunities. Price below 200 EMA: Focus on short (sell) opportunities. Customizable Inputs:
Fast EMA Length, Slow EMA Length, Signal Line Length, and MACD scaling are all adjustable to fit your trading preferences. The 200 EMA display can also be toggled on or off as needed. Tips for Best Results Use this indicator in trending markets for optimal performance. Avoid trading in range-bound or low-momentum conditions, as this may result in false signals. Combine this indicator with other tools, such as key support/resistance levels or candlestick patterns, to further improve accuracy. This indicator is designed to help traders simplify decision-making while leveraging the power of the MACD and 200 EMA combination. It’s easy to use, visually intuitive, and suitable for both beginners and advanced traders.
If you find this indicator helpful, consider sharing your feedback and results. Happy trading!
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