Color MA Indicator
Platform: MT4 Type: Trend Last update: September 15, 2024The Color MA Indicator for MT4 can be considered a simple trend gauge showing market’s direction together with entry and exit signals through a colored line. Surprisingly, it has pretty impressive backtest record showing improved success rate when compared to similar tools. Let’s take a further look at it.
Analysis of the color ma
Essentially, this is a enhanced version of the well-known moving average which has some additional and unique features. The first thing that catches an eye is three distinct sections: green, red and gray. You can observe it at the example chart below.
The green indicates and uptrend, the red reflects ongoing downtrend and the gray has a special meaning. It helpfully displays sideways price action, which is sensitive phase and it’s good to understand market consolidations here.
When it comes to accuracy, we think it’s solid, but on higher time frames it may give less false signals. It’s smart to check overall trend in higher TF and use lower one for entry.
Simplified trading rules
The approach applied here is really easy. The trigger to jump in long trade is after the ma changes color green and corresponding candlestick should close for confirmation. For the short it’s just the other way round. As you can see, there is not much fanciness in this strategy. For the improved results, you can onboard additional technical analysis tools or even use this one alone but leverage multi timeframe analysis.
