LWMA is short for linear weighted moving average.
This type of moving average puts more weight to the latest data and is less lagging than the default moving average.
The LMWA Crossover Signals indicator for MT4 generates real-time buy and sell trading arrows directly on the chart for any currency pair and timeframe.
The arrows are based on the crossover of 2 LMWA’s with different period. One with longer period and one with shorter period.
- Buy signals: green arrow
- Sell Signals: red arrow
The values of the faster and slower LWMA can be changed from the indicator’s input tab.
It works for short-term signals (scalping, day trading) and longer-term signals (swing trading, position trading).
The USD/JPY H1 chart below displays the LMWA Crossover Signals forex indicator in action.
Basic Trading Signals
Signals from the LMWA Crossover Signals forex indicator are easy to interpret and goes as follows:
Buy Signal: Open buy trade when a green arrow appears on the activity chart.
Sell Signal: Open sell trade when a red arrow appears on the activity chart.
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 (FasterLWMA, SlowerLWMA) 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 lwma-crossover-signal.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)