The Fractal Adaptive Moving Average MT4 forex indicator is a crossover forex trading system that works and consists of two simple signal lines.
The indicator uses a smart smoothing filter to filter out the vast majority of false crossover signals.
So, the profitability of this indicator is not bad at all!
A bullish trend occurs when the red line is positioned above the blue line.
Conversely, a bearish trend occurs when the red line is positioned below the blue line.
The indicator’s default R period is set to 16 but can be changed from the inputs tab.
Feel free to experiment with this value!
For scalping and day trading, use this Metatrader 4 during the London and new York trading sessions.
The GBP/USD 4-Hour chart below displays the Fractal Adaptive Moving Average Metatrader 4 indicator in action.
Basic Trading Signals
Signals from the Fractal Adaptive Moving Average MT4 indicator are easy to interpret and goes as follows:
Buy Signal: Initiate buy trade when the red signal line crosses above the blue signal line from below (bullish trend). Place a stop loss below the previous swing low price.
Sell Signal: Initiate sell trade when the blue signal line crosses above the red signal line from below (bearish trend). Place a stop loss above the previous swing high price.
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 (R period, multiplier, signal multiplier) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: trend system
Copy and paste the fractal-adaptive-moving-average.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)