3 EMA Crossover Indicator
Platform: MT4 Type: Trend Last update: September 26, 2024The 3 EMA Crossover Indicator for MT4 is a simple and accurate forex indicator to show bullish and bearish Exponential Moving Averages intersections. Free download.
Due to the very approachable form of signals, it is recommended for beginners, but obviously can be used by advanced forex traders too.
It fits all kinds of currency pairs and timeframes so strategies like scalping, trend following, and swing trading can be successfully utilized.
Closer look at the 3 EMA Crossover Indicator
In most cases, forex templates involving EMAs show crossover signals on the main price chart.
That particular one displays its signals within its own window and in the form of colorful bars.
There are three types of these bars, each has its own size, color and meaning.
The tall green bar reflects a bullish crossover and an uptrend is expected. Similarly, the big red bar suggests a bearish crossover and potential downtrend.
Small yellow bars just mean a neutral market or trend direction indecision.
Take a look at the example chart below.
Buy Signal
Long trade signal explanation and rules
- The 3 EMA crossover indicator provides green bars
- There is a bullish price pattern
- Set stop loss a few pips below the most recent swing low of the market
- Exit trade if the yellow bars appears
- Take profit or exit trade after securing a position with a good risk-to-reward ratio
Sell Signal
Short trade signal explanation and rules
- The 3 EMA crossover indicator provides red bars
- There is a bearish price pattern
- Set stop loss a few pips above the most recent swing high of the market
- Exit trade if the yellow bars appears
- Take profit after securing a position with a good risk-to-reward ratio
Settings
These are available settings. By default, the indicator uses 5, 10 and 20-period EMAs.