BB MACD: a variation on the standard MT4 indicator
BB MACD indicator is a variation of the indicator MACD (Moving Average Convergence Divergence)which helps to determine the points of change in the trend direction, as well as the strength of the current trend. The indicator is drawn in a separate chart window and consists of two lines (blue and red) and dots, which can be either green or lilac. Changing the color of the dots is a good signal, while the width of the gap between the lines shows the strength of the current trend.
Input parameters:
- FastLen (default = 12) - period of the "fast" moving average (with the smallest period), which is used to calculate points in this indicator.
- SlowLen (default = 26) - period of the "slow" moving average (with the largest period), which is used to calculate points in this indicator.
- Length (default = 10) - period of moving average and standard deviation indicator, which are used to calculate lines in this indicator.
- barsCount (default = 400) - the maximum number of bars in the chart, for which this indicator will be shown (not an important parameter).
- StDv (default = 2.5) - weighting factor for the standard deviation indicator in its role compared to the moving average.
Buy signals occur when the lilac dots turn green, and sell signals occur when the green dots turn lilac. According to the ForTrader.org experts, it is better to trade when the gap between the blue and red line BB MACD indicator is quite broad.