Moving averages are the best custom indicators that the forex market will ever get. This indicator is also used in many other indicators and most automated trading. As the name suggests, the fx moving average is a dynamically changing average of the previous forex market prices. It is dynamic since it changes with time as new forex market prices are brought into the forex market. With these averages of the forex market prices, the forex trader can get the trend of the forex market and even know when to trade or not.
Unlike the way the forex Moving averages are usually drawn on the main mt4 trading chart as a line that follows the forex market prices, the forex Multi Moving Average Forex indicator is displayed on a separate mt4 screen below the main mt4 trading chart as several lines with the dots changing color from red color to aqua.
The moving averages that are used in this indicator are the exponential moving averages (EMA). Their periods are indicated within the brackets. The EMAs utilized are of the periods of 13,34,55,89. Then all the EMA are by default programmed to work on the H1 timeframe.
The trend of the forex market trend is indicated by the color rather than a line that follows the market prices. When the EMA color is red, the predicted trend is a downtrend. and, if the color of the EMA is aqua color, then the direction that is indicated is a market uptrend.
Fig.1. The forex Multi Moving Average indicator.
This indicator is not restricted to specific forex currency pairs, but it can be used on any currency pair of your choice. You are at liberty to use any timeframe of your choice. When you change your timeframe, it will be indicated before the EMAs. It has very high efficiency because several EMAs are used.
Using the Multi Moving Average indicator to trade
When using the Multi moving average indicator, there are specific things that the trader should always keep in mind. These include:
- The red color indicates a downtrend, while the aqua color indicates an uptrend.
- Trading should be done when all the indicators indicate a similar color. If it is aqua, all should have aqua, and if it is red, all should be red.
- Never trade even if three indicators display a similar color, but only one doesn‘t.
- After placing a trade, the trader should close it when one of the EMAs changes its color from the color used to place the trade to the opposite color.
- Should place every order after the second or third dot of the EMA.
Placing a sell: a sell is placed on the second or third red dot if all the EMAs are red in color.
Placing a buy: a buy is placed on the second or third aqua dot if all the EMAs are aqua in color.
Fig.2. Placing trades using the Multi Moving Average indicator.
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Multi Moving Average Forex Indicator Free Download