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The DSL TEMA MACD indicator is a trading system based on the calculation of several forex indicators. Its calculations are aimed at determining information about the current trend in the market, namely its direction and strength. It is displayed in the lower window of the price chart as three lines: the main and two signal ones, which, when determining the current trend, move in a certain direction, are painted in a certain color, interlacing with each other. The current values of the indicator determine the current trend, which in turn also allows opening a certain trade during this period.
The DSL TEMA MACD indicator works equally effectively on all timeframes using any currency pairs, so their choice does not matter.
Input parameters
The settings of the DSL TEMA MACD indicator consist of the Input Parameters section that affects its technical operation. The Colors section is responsible for its general visualization, and the Levels section is responsible for adding signal levels to its window.
-Fast TEMA period - the period of the fast moving average of the indicator. The default value is 19.
-Slow TEMA period - value of the period of the slow line of the TEMA indicator. The default value is 39.
-Signal period - period of the signal line of the indicator. The default value is 9.
-Price - type of the price to which the general calculations of the indicator are applied. The default value is Close price.
Indicator signals
The DSL TEMA MACD indicator is an easy-to-use indicator, which is the result of its simple visualization. To open a certain trade using the indicator, the direction and strength of the current trend is determined. For this, in turn, one should take into account the intersection of its lines, their general direction and main color. If the current market trend is upward, long positions are opened, if the trend is downward, short positions are opened. When the direction of the current trend changes, in both cases, trades are closed. At the same time, while the indicator line is in the neutral zone, trades are not opened at all.
Signal for Buy trades:
- The indicator lines are moving up, while the main line, colored in color with the growth value, is higher than the two signal ones.
Upon receipt of such conditions on a signal candle, a buy trade can be opened, due to the presence of an upward trend in the market. When the current trend changes, namely, when the main color and direction of all three lines change, the transaction closes. At this moment, it should be considered opening new trades.
Signal for Sell trades:
- The indicator lines move from top to bottom and intersect so that the main line, which has a color with a fall value below two signal ones.
A sell trade can be opened immediately upon receipt of such conditions on a signal candle. At this moment, a downward trend is determined in the market. When changing its direction, namely when changing the color and direction of its lines, the trade should be closed and the opening of new ones should be considered.
Conclusion
The DSL TEMA MACD indicator is a very efficient trading algorithm based on the performance of time-tested accurate forex indicators. It is very easy to use and therefore suitable for traders of all skill levels. At the same time, before trading with the indicator, it is recommended to practice on a demo account.
