The LSMA indicator is a customized moving average designed for Metatrader 5 that reacts faster to sudden trend changes.
It leads to decreased lag and better trend prediction.
How to spot the trend with the LSMA indicator?
- The market is considered bullish when the candles are positioned above the LSMA indicator.
- The market is considered bearish when the candles are positioned below the LSMA indicator.
The following indicator inputs and parameters can be modified: smoothing depth, price constant, horizontal shift, vertical shift.
The LSMA indicator works for any trading instrument supported by the MT5 charting platform.
Make yourself familiar with this technical indicator and test it first on a demo account before using it on a live trading account.
It supports all time frames and Forex pairs.
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The following chart shows how the LSMA indicator looks when applied to the MT5 chart.
How To Buy And Sell Forex Pairs With The LSMA Indicator?
Find a simple trading example below:
- A buy trend occurs when the candle closes above the purple colored LSMA line from below.
- Execute a buy market order and set a protective stop below the previous swing low level.
- Exit the buy trade for a potential reward to risk ratio of 1.5.
- Alternatively: close the buy position and reverse the trade when the candle closes back below the purple line.
- A sell trend occurs when the candle closes below the purple colored LSMA line from above.
- Execute a sell market order and set a protective stop above the previous swing high level.
- Exit the sell trade for a potential reward to risk ratio of 1.5.
- Alternatively: close the sell position and reverse the trade when the candle closes back above the purple line.
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Frequently Asked Questions
How Do I Install This Custom Indicator On Metatrader 5?
- Open the MT5 trading platform
- Click on the File menu button located at the top left part of the platform
- Click on Open Data Folder > MQL5 folder > Indicators
- Copy the lsma.mq5 indicator file in the Indicators folder
- Close and restart the trading platform
- You will find the indicator here (Navigator window > Indicators)
- Drag the indicator to the chart to get started with it!
How Do I Edit This Indicator?
- Click in the open chart with your right mouse button
- In the dropdown menu, click on Indicator List
- Select the indicator and click on properties
- Now you can edit the inputs, colors, levels, scale and visualization
- Finally click the OK button to save the new configuration