The 5 MA’s Signal forex indicator for MT4 consists of 5 simple moving averages with periods set at 8, 21, 50, 100 and 200 respectively.
All combined together creates a stand alone trend following crossover trading system.
The different moving averages use the following colors:
- 8 MA: sienna color
- 21 MA: green color
- 50 MA: blue color
- 100 MA: red dotted color
- 200 MA: red color
The two most interested moving averages to trade off are the 200 period moving average and the 50 period moving average
- A bullish trend occurs when the 50 period MA crosses above the 200 period MA from below
- A bearish trend occurs when the 50 period MA crosses below the 200 period MA from above
This combinations works pretty good for trend trading.
The 21 MA and the 8 MA can be used for scalping in the direction of the underlying trend as defined by the 200 MA and 50 MA crossover system. Learn more below how it works.
Feel free to experiment with different moving averages periods to suit your needs.
The AUD/USD 1-Hour chart below displays the 5 MA’s Signal Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the 5 MA’s Signal MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Initiate buy position when the 50 period moving average crosses back above the 200 period moving average from below.
Buy Scalp Trade: Open buy scalp when the 8 MA crosses back above the 21 MA from below and the 50 period MA is positioned above the 200 period MA.
Sell Signal: Initiate sell position when the 50 period moving average crosses back below the 200 period moving average from above.
Sell Scalp Trade: Open sell scalp when the 8 MA crosses back below the 21 MA from above and the 50 period MA is positioned below the 200 period MA.
Trade Exit: Use your own method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (MA 1, MA 2, MA 3, MA 4, MA 5) 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 carter-ma-indicator.mq4 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)