Moving Average Strength Indicator
Platform: MT4 Type: Trend Last update: September 25, 2024The Moving Average Strength Indicator is a multifunctional forex trading gauge, based on the Moving Average, MACD, and Stochastic. You should choose short period of MA if you prefer using it for scalping, and long period if you it to be suitable for trend-following and swing trading.
Anatomy of the Moving Average Strength Indicator
The signals provided by the Moving Average Strength Indicator are presented in the form of histogram bars. When their value raises above the zero level, it means a bullish trend is considered. Conversely, negative values indicate bearish momentum. In other words, you should look for buy opportunities when the Moving Average Strength value is positive and spot for short opportunities whenever the value turns negative.
These are customizable inputs in the settings window:
Buy Signal
Follow these steps for a long trade:
- The market is clearly in uptrend (take a look from left to right)
- There was an correction and indicator values fell to oversold level
- The correction exhausted and indicator values turnes positive again
- Buy trade is now triggered
- Set stop loss a few pips below the most recent market low
- Take profit after reaching satisfying risk to reward ratio
Sell Signal
Follow these steps for a short trade:
- The market is clearly in downtrend (take a look from left to right)
- There was an correction and indicator values rised to overbought level
- The correction exhausted and indicator values turnes negative again
- Sell trade is now triggered
- Set stop loss a few pips above the most recent market high
- Take profit after reaching satisfying risk to reward ratio
