Sign In with Google
Sign In with Facebook
MACD 2Line is a technical analysis indicator, an improved version of the classic MACD.
This indicator is similar to a regular MACD, but its histograms change color from green to red and vice versa, depending on where they are located, above or below the zero line.
In addition to color changes, the difference of this indicator is that it has an additional signal line. Depending on the location of these two lines, this trading indicator is able to give additional signals for traders.
You can download MACD 2Line from the link below.
Indicator settings.
The indicator settings have the same parameters as in the classic MACD.
The FastEMA parameter is the value responsible for the period of the Fast Moving Average. SlowEMA, respectively, determines the period of the slow exponential moving average. SignalEMA is the period of the moving histogram of the indicator.
Signals of the MACD 2Line indicator.
In addition to the main signals, such as overbought/oversold zones, divergence signals, which, like the standard MACD, this indicator gives, its main distinguishing feature is an additional signal of the indicator lines crossing. It is believed that the intersection of lines in the MACD 2Line indicator gives a more accurate amplified signal.
For example, it is customary to consider any value above zero to be an overbought zone in the MACD indicator. And the higher this value, the stronger the signal for a trend reversal. But how to determine where will be the highest value of the overbought zone? In the MACD indicator, this can only be determined by comparing the histogram value with its previous values. The MACD 2Line indicator has an advantage over its counterpart in that the additional line of this indicator, when crossing the main one, gives a confirmation signal to determine the overbought or oversold financial asset.
Conclusion.
From the above definition, it is clear that the additional line of this indicator serves as an amplifier of signals. In particular, this advantage can be useful in building reversal trading strategies. Use this indicator as an additional auxiliary tool when creating various trading systems.
