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The MACD of QWEMA indicator is a trading algorithm, the calculations of which are based on the interaction of the calculations of two forex indicators, namely the standard MACD, the calculations of which are smoothed by using a modification version of the moving average, namely QWEMA. The indicator's calculations are aimed at determining information about the current trend, namely, its strength and direction, which in turn allows determining the moment of opening a position. It is represented in the lower window of the price chart in the form of two lines: the main and the signal, the distance between which is painted in a certain color. The current values of the lines are the main ones in determining the trend and trade during this period directly.
The MACD of QWEMA indicator is suitable for use on any timeframe, with any currency pairs. It should also be taken into account that the indicator is suitable for use in multi-timeframe mode.
Input parameters
There are a number of sections in the indicator settings, which in turn are aimed at the general functioning of the indicator. Thus, the Input parameters section is used to change the values of its technical work, the Colors section - for its general visualization, and the Levels section - for adding signal levels to its window.
-Time frame - timeframe usage parameter. Default value is current.
-Fast period - value of the period of the indicator's fast line. The default value is 12.
-Slow period - period of the slow moving average line of the indicator. The default value is 26.
-Signal period - period of the signal line of the indicator. The default value is 9.
-Speed - indicator calculation speed. Default value is 1.0.
-Price - type of the price to which the indicator's calculations are applied. By default, it has the Close value.
-Turn alerts on? - option to use notifications when an alert is received. The default value is false.
-Alert on current bar? - Notification parameter on the signal bar. The default value is true.
-Display message on alerts? - option to receive a message on alerts. The default value is true.
-Play sound on alerts? - option to sound notification on alerts. The default value is false.
-Send email on alerts? - option to receive an email when an alert is received. The default value is false.
-Send push notification on alerts? - parameter to receive a signal in the form of a push notification. The default value is false.
-Interpolate mtf data - parameter for using the indicator in multi-timeframe mode. The default value is true.
Indicator signals
The MACD of QWEMA indicator is very easy to use due to its clear and convenient visualization. To open a certain trade, one should take into account the direction and strength of the current trend, which in turn are determined by the indicator values, namely the direction of its lines, their intersection and the color of the main line. If the indicator determines the presence of an upward trend, long positions are opened, in a downward trend, short positions are opened. In both cases, when the direction of the current trend changes, trades are closed.
Signal for Buy trades:
-The indicator lines move up, above level 0 and intersect so that the main one, which has a color with a growth value, is above the signal line.
Upon receipt of such conditions, a buy trade can be opened on a signal candle, confirmed by the indicator signal. At this moment, an upward trend is determined in the market. It should be closed the trade when the opposite conditions from the indicator are received. At this moment, the current trend may change, which in turn will allow considering opening new trades.
Signal for Sell trades:
-The indicator lines are directed from top to bottom and intersect so that the signal line is higher than the main one, which has a color with a falling value.
A sell trade can be opened upon receipt of such conditions and a signal from the indicator. At this moment, a downward trend in the market is determined. It should be closed when the trend changes, namely, when the opposite conditions are received. At this moment, one should consider opening new trades.
Conclusion
The MACD of QWEMA indicator is a very effective indicator, since its calculations are based on the interaction of precise forex indicators. In addition, the indicator is very easy to use, not only due to simple visualization, but also due to the presence of signals. Before using the indicator on a real deposit, it is recommended use a demo account.
