Averages are constantly employed during market assessment, and traders view the change of the slope of the averages as a buy/sell trade alert.
This method has its drawbacks, as it yields numerous false signals in ranging market.
Filtering out insignificant changes in averages is one way currency traders use to minimize frequent false trading signals.
Furthermore, using percent of Average True Range as filter is one tactic traders can deploy to fix one of the indicators’ weak aspects, which relates to the use of pips step size.
This is so because different timeframes tend to show different results for pips step size, and the percent of ATR sorts this problem, making the indicator quite adaptive.
The color changes of the line of the Step Average Easy Signals MT5 forex indicator indicates the emergence of trade signals.
The AUD/USD M30 chart below displays the Step Average Easy Signals Metatrader 5 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the ascending line of the Step Average Easy Signals Metatrader 5 forex indicator turns dodger blue, while aligning itself below the candlesticks.
Sell Signal: Go short when the descending line of the Step Average Easy Signals Metatrader 5 forex indicator turns sandy brown, while price trades somewhat below the line.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, the indicator line turns sandy brown.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, the indicator line turns dodger blue.
Tips: The Step Average Easy Signals forex indicator resembles the moving average and will change the color of its line based on bullish (dodger blue) or bearish (sandy brown) market conditions.
It is an effective scalping and day trading tool built to perform well through various market volatility phases.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart pattern indicator
Customization options: Variable [Average period (<=1 for no average calculation), Average type, Price, ATR period (<=1 for same as average period), ATR step size (in % of ATR)], 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 Step average (atr based).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)