Are you looking to harness the power of TMA to reduce the lag of moving averages and combine it with the powerful MACD? If so, The TMA MACD indicator for Mt4 does it best.
How to trade successfully with TMA Moving Average Convergence and Divergence MT4 Indicator?
The indicator calculates the MACD values using the next higher time frame than the current chart time frame. As a result, provides trading signals based on the next higher time frame trend. Staying in the trend direction of a higher time frame helps the trader exploit fluctuations in the current chart time frame.
Buy and sell signals are provided when the MACD histogram changes its color. This colored MACD indicator indicates the trend changes easily identifiable by both new and advanced traders. Trading with higher time frames tends to be more rewarding than the lower timeframes.
How to get the best signals using crossover in the TMA MACD indicator for MT4 ?
The indicator can generate signals based on the MACD values’ crossover above a predefined Hot level instead of the traditional MACD Zero line crossover. These predefined Hot levels help technical traders to eliminate noise and avoid trading signals generated by smaller fluctuations. However, these levels vary with timeframes and currency pairs and their volatility. So, Traders should test and identify Hot levels at their discretion for successful trading.
The markets are considered bullish above the MACD Hot level and bearish below these levels. Arrows drawn on the charts provide Buy and Sell signals on the bullish and bearish crossovers.
Limitations:
The performance of TMA MACD indicator for Metatrader 4 may not be up to the expectations of traders during ranging markets.
The indicator provides signals upon the crossover of the Moving average Convergence and Divergence values above Hot levels. Therefore the Hot level value needs to be custom calculated for every currency pair. In short, Traders cannot use the same Hot level for all the trading instruments.
Setting
Conclusion:
The TMA MACD indicator for MetaTrader successfully reduces the lag in moving averages and therefore, adds more support to Moving Average Convergence and Divergence calculations. It is thus capable of providing the forex trader with successful trading signals in higher time frames.
