The SMA Crossover Signal Metatrader 4 indicator is a very popular MT4 technical indicator.
The indicator is based on the crossover of two simple moving averages, one faster and one slower.
Understanding how this system works is very simple:
When the faster SMA crosses above the slower SMA from below, this generates a buy signal.
The indicator displays a green buy arrow on the Metatrader 4 chart.
Conversely, when the faster SMA crosses below the slower SMA from above, this generates a sell signal.
The SMA Crossover Signal Metatrader 4 can be used as a standalone indicator or together with other indicators or analysis tools.
It works for scalping, day trading and swing trading.
The default indicator values are set to 9 and 18 but can be changed directly from the indicator’s input tab.
Experiment with its settings!
The EUR/USD H1 chart below displays the SMA Crossover Signal forex indicator in action.
Basic Trading Signals
Signals from the SMA Crossover Signal forex indicator are easy to interpret and goes as follows:
Buy Signal: Open buy trade when a green SMA crossover buy arrow appears on the trading chart.
Sell Signal: Open sell trade when a red SMA crossover sell arrow appears on the trading 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 indicator
Customization options: Variable (Faster SMA, Slower SMA) 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 sma-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)