The 200 SMA System MT4 Forex indicator is a complete trading system indicator for Metatrader 4.
You can use this indicator system in various ways, the most easy way to use it goes like this:
- Price trades above the 200 SMA (yellow line), this is bullish price action and traders look to buy the forex pair
- Price trades below the 200 SMA (yellow line), this is bearish price action and traders look to sell the forex pair
The other indicator lines can be used to buy dips in up trends (price above the 200 SMA) or sell rallies in down trends (price below the 200 SMA).
Strong trends can be seen when the price is either trading above all lines or below or lines.
The EUR/USD M30 chart below displays the 200 SMA System forex indicator in action.
Basic Trading Signals
Signals from the 200 SMA System forex MT4 indicator are easy to interpret and goes as follows:
Buy Signal: Open buy order when price crosses and closes above the 200 SMA yellow line from below.
Sell Signal: Open sell order when price crosses and closes below the 200 SMA yellow line from above.
Trade Exit: Close the open trade when an opposite signal occurs, or use your own method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern
Customization options: Variable (Alarm, timeframe) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the raghee-vague.mq4 indicator into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)