This indicator is based on the Moving Average Crossover.
The system is the following.
Best works in 1hour /4hours/1 day
- 2 Moving Average Period (the longer the better) and a types (eg Single)
- Take Profit pips (the longer the MAs the more you can set).
- An additional few Stop Loss pips
I usually go with Simple Moving Average 50 vs Simple Moving Average 20, Take Profit 100, Stop Loss 15
Action: Buy when the Short MA crosses above the Long MA
Sell when the Short MA crosses bellow the Long MA
Take Profit: Set it a number of pips (eg 100 for a 50 MA) after the short MA has crossed the Long MA
Stop Loss: Should be equal to the value of the Long Moving Average and should be updated at each period. Include a few pips (eg 10-15) to give you a bit of room in the beginning of the trade
You can use the following MT4 indicator (attached bellow) named Moving Average Crossover Trader for this system, to test what is happening and to get alerts when a crossover occurs for up to ten currencies instantly with a click of the button.
Using the indicator above you can tell
-If the Trend at the moment is Up (Short Moving Average=↑) or Down (Short Moving Average=↓) and decide if you want to take -the trade at that moment.
-What the Short MA has been in relation to its Long MA for the last 4 periods
-What the last market price was where the 2 Moving Averages have crossed over
-The Stop Loss and Take Profit prices you should select if you were to take a trade at the current moment
-How far from you Stop Loss and Take Profit the current market price is (if the Take Profit Distance is not far from the Take Profit price or it has been exceeded you should avoid opening a trade at that moment as it indicates you missed your chance)
-Notified by a detailed alert (optional) whenever a crossover between the 2 Moving Averages and hence an immediate trade opportunities arises.
↗ for buying
↘ for selling
You can attach this indicator to several charts each time selecting different timeframes, and periods for the Moving Averages . You will receive an alert each time a crossover has occurred which informs you at which currency pair has occurred and the timeframe properties.
When you attach the indicator to the chart you get the following options
Moving_Average_Period : Averaging period for calculation
Moving_Average_Method: MA method
Moving_ Average_Applied_Price: Applied price
Note that the long period value needs to be greater than the short
Alerts: Whether Alerts to be displayed when a crossover has occurred
Currency #: Which currency pair to be analysed at position #
Currency #_Alerts: Whether Alerts to be displayed for the particular currency pair
This indicator is also available in Multi Time Frames Version.