The 3rd Generation Moving Average indicator is an advanced version of MetaTrader’s standard moving average (MA) indicator. It implements a relatively simple lag-reducing procedure based on the more extended MA period. The method was first described by Mr. M. Duerschner in his article Gleitende Durchschnitte 3.0 (in German). The presented version uses λ = 2, which provides the best possible lag-reducing. Higher λ increases similarity with the classic moving average. The indicator is available for both forex MT4 and MT5. It does not require using any DLL.
- MA_Period (main default = 50) — a period of the 3rd generation moving average.
- MA_Sampling_Period (main default = 220) — a sampling period of the 3rd generation moving average. It should be at least four times greater than MA_Period.
- MA_Method (main default = MODE_EMA) — method of the moving average.
- MA_Applied_Price (main default = PRICE_TYPICAL) — applied price for the moving average(MA).
As you see, the forex 3rd Generation MA (red color line) offers slightly less lag than the conventional EMA (blue color line) and reacts to the market price changes faster. Unfortunately, it is still prone to bit lag and may produce false entry signals. You can use the forex 3rd Generation Moving Average forex trading indicator, the same as the standard moving average(MA) — to detect the current trend direction.
This forex indicator is used for trading in MetaTrader’s Adjustable MA 3G expert advisor.
3rd Generation Moving Average Indicator Downloads
Warning! If you do not know how to set up this forex indicator, please read the MetaTrader Indicators Tutorial.
Do you have any more suggestions regarding this forex indicator? You can always discuss the 3rd Generation Moving Average with the other traders and MQL programmers on the indicators forums.