The Moving Average Spectrum Metatrader 5 forex indicator is a financial asset oscillation spectrum normalized by values of a simple moving average.
The Moving Average Spectrum indicator is comprised of eight uniquely colored lines that are labeled as follows:
Wave 1 (red), Wave 2 (orange), Wave 3 (yellow), Wave 4 (Lime), Wave 5 (Blue), Wave 6 (Dodger blue), Wave 7 (Dark violet) and Wave 8 (Dim gray).
These waves averaging lines are set by default as simple moving averages.
However, other averaging types like the exponential, smoothed and linear weighted can also be implemented.
We advise that you try them out to see the type that best suits your trading.
Buy and sell signals from this indicator are easy to interpret (see explanation more down below).
The EUR/USD H4 chart below displays the Moving Average Spectrum Metatrader 5 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when price bars trade above all the waves or lines of the Moving Average Spectrum Metatrader 5 forex indicator, while the lime colored wave stays at the bottom of all waves.
Sell Signal: Go short when price bars trade slightly below the waves or lines of the Moving Average Spectrum Metatrader 5 forex indicator, while the lime colored wave stays at the top of all waves.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, the lime wave intersects any wave of the Moving Average Spectrum indicator bottom up.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, the lime wave intersects any wave of the Moving Average Spectrum indicator top downward.
Tips: Trading the Moving Average Spectrum indicator in isolation has the capacity to create more wealth for any currency trader who studies the indicator closely.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart pattern indicator
Customization options: Variable (indicator time frame, Bar index for the calculation start, Wave height, Smoothing period to the calculation of moving average, type of averaging, type of price), 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 spectr.ex5 indicator into the MQL5 indicators folder of the Metatrader 5 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL5 > Indicators (paste here)