When MACD is over the 0 line and the color of the MACD is green.
When MACD is below the 0 line or the color of the MACD is red.
When MACD is below the 0 line and the color of the MACD is red.
When MACD is over the 0 line or the color of the MACD is green.
This is how I use this indicator.
So...The indicator is drawing a green/red bar if the long presure vs short presure is over/below 50/50 and at 50/50.
The indicator have a Smoother and it is quite useful on short timeframes.
The smoother works better then the standart 9 SMA.
What the indicator offer?!
I've put a lot of work on this...
I have been searching for a way to calculate the trend risk for a few weeks.
If you are a seasoned trader you have to know that we dont buy/sell EUR/USD,USDCHF...bla..bla...bla...
THE THING THAT WE BUY AND SELL IS...THE RISK.
So if I can see what is the chance of the MACD to continue uptrending or the chance of the MACD to go down... - We can know does the deal worth the risk.
If In a UPTREND a new red bar occurs - the risk is not in your favor.
AND VS
If In a DOWNTREND a new green bar occurs - the risk is not in your favor.
THANKS TO:
Indiana Pips for his work on making the indicator to work on Jforex Platform.