!SupportingMACD

Here's a breakdown of what this MetaTrader script does in simple terms:

This script is designed to display a popular trading indicator called the MACD (Moving Average Convergence Divergence) on a chart in MetaTrader. The MACD helps traders identify potential buying and selling opportunities by analyzing price trends.

Here's how it works:

1. Configuration: The script starts by allowing the user to customize three key settings:

   • FastEMA: This sets the period for a faster-moving average.
   • SlowEMA: This sets the period for a slower-moving average.
   • SignalSMA: This sets the period for another moving average, used as a "signal line".

2. Calculation: The script performs the following calculations for each price bar on the chart:

   • It calculates two Exponential Moving Averages (EMAs) of the closing prices. One EMA uses the "FastEMA" setting, and the other uses the "SlowEMA" setting. The EMA is a type of average that gives more weight to recent prices.
   • It subtracts the "SlowEMA" value from the "FastEMA" value. The result is the MACD line.

3. Signal Line: To create the signal line:

   • It calculates another moving average (this time a Simple Moving Average or SMA) of the MACD line itself, using the "SignalSMA" setting.

4. Display: Finally, the script displays two things on a separate window in the chart:

   • A histogram representing the MACD line (the difference between the two EMAs).
   • A line representing the "signal line" (the moving average of the MACD).

In essence, the script automates the complex calculations needed to display the MACD indicator and its signal line. Traders then use these lines and their relationship to identify potential trend changes and trading signals. For instance, crossovers of the MACD line and the signal line are often interpreted as potential buy or sell signals.