3 MA Cross with Alert MTF Indicator
Platform: MT4 Type: Trend Last update: October 16, 2024The 3 MA Cross with Alert MTF Indicator for MT4 is, as the name suggests, a system based on intersections of three moving averages. It helps to accurately recognize trend direction. Additionally, a buy/sell arrows are placed on the charts signaling a bullish or bearish change. Let’s have a look if this is a good tool.
First of all, this is how it looks in action.
How does this three ma cross work?
Anatomy analysis
As you can see, this indicator consists of five elements: slow, medium and fast period lines, up/down arrows and… diamonds. Each element has its own specific role and meaning. Namely, moving averages obviously define market trend and both diamonds and arrows correpond to concrete crossover setups, which are described in the next section.
Trading tips
There are two distinct triggers of potential trades. Always blue color is a sign of bull case and red color is a bear case. The first signal is displayed in the form of diamond and essentially reflect cross between fast and medium moving averages. This should be rather utilized in scalping or considered an early bird of medium/long trend reversal.
The second trigger is well-known arrow and its being placed on chart when a cross between medium and slow lines occurs. This is where you can expect more significant market moves and price fluctuactions.
Combination possibilities
This is pretty self-contained tool and can be successfully used standalone, but of course it’s possible to make some interesting combinations to increase success rate or to get look on market picture from a bit different perspective.
Idea: Fibonacci Pivots
Onboarding Fibonacci Pivots is one of the ideas in order to achieve more profitable trades. It defines important levels at which price is likely to react. You should watch price action and rejection of support or resistance. It should be followed by a placement of a diamond.
See the example below where it rejected Fibo R1 and next there was a significant bearish move after the diamond was put on chart.
Conclusion
Although this indicator may looks a bit basic as it just uses standard moving averages, it actually often gives pretty good signals. Forex traders can take advantage of aggresive (diamonds) or conservative (arrows) approach. What’s more, it can be used in conjuction with other technical analysis tools for better results.
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