The Double Moving Average Signal MT4 forex indicator looks a bit similar to MACD but it really isn’t the same.
It generates its signals in a different way:
- When the short MA crosses above the long MA from below, this creates a bullish trend
- When the short MA crosses below the long MA from above, this creates a bearish trend
It’s a typical signal crossover forex system!
For the ease of use, the Double Moving Average Signal indicator displays green and red bars in a separate Metatrader 4 window.
- A bullish trend occurs when the green and red bars are aligned above the zero mark
- A bearish trend occurs when the green and red bars are aligned below the zero mark
The default moving averages periods are set to 32 (short MA) and 208 (long MA). These periods can be changed directly from the indicator’s inputs tab.
Feel free to experiment with different moving averages periods to suit your needs.
Download the “cao-indicator.mq4” MT4 indicator
The GBP/USD 1-Hour chart below displays the Double Moving Average Signal Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the Double Moving Average Signal MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Open buy trade position at the first green bar positioned above the zero mark from below.
You can add an additional buy trade position in the bull trend when the bar color changes from red to green and the bars are still positioned above the zero mark.
Sell Signal: Open sell trade position at the first red bar positioned below the zero mark from above.
You can add an additional sell trade position in the bear trend when the bar color changes from green to red and the bars are still positioned below the zero mark.
Trade Exit: Use your own method of trade exit.
Download the “cao-indicator.mq4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (short MA, long MA) 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 cao-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)