4 MA Strength Indicator
Platform: MT4 Type: Trend Last update: October 19, 2024The 4 MA Strength Indicator for MetaTrader 4 generates buy and sell trading signals using, as its name suggests, a set of four moving averages. This indicator analyzes the price chart to determine both the direction and power of the ongoing trend. When it’s applied to the chart, it displays a histogram of colored bars.
To get better understanding, just take a look at the example here.
Explaining the signals of 4 ma strength
The calculations are based these moving averages, however they are not plotted directly among candlesticks, they are transformed into the actual signals instead. The core idea applied in this gauge are differences between values of the four incorporated tools.
Simply speaking green readings suggests bullish trend. Conversely, red readings reflects bearish momentum. Colors of indications is one aspect and a size of the bars is another one. The bigger they are, the bigger discrepancy occurs.
When the color changes it may be early sign of the market reversal and a trader can open a trade. Potentiallly one can jump into new trend in early, thus making better profit becouse of staying in a price swing for prolonged time. On the other hand, there is also a risk of false signal. For better success rate, it would be wise to board a technical analsysis confirmation tool.
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