Introduction to the SMA Crossover Signal Indicator
The SMA Crossover Signal Indicator is a forex trading tool based on the crossover of two simple moving averages – one faster and one slower. For signals it displays buy and sell arrows.
When it comes to understanding trading rules, it is pretty easy to follow. When the faster SMA crosses above the slower SMA, this indicates a buy signal. Similarly, when the faster SMA crosses below the slower SMA, this indicates a sell signal.
This indicator is plotted directly on the main trading chart.
We suggest to use it as a filter for opening and exiting transactions. Go ahead and add it to your best trading system.
It fits all kinds of timeframes and currency pairs.
The default indicator settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences.
How to set up the SMA Crossover Signal indicator in MT4?
Copy and paste the sma-crossover-signal.mq4 or sma-crossover-signal.ex4 indicator files into the MQL4 folder of the Metatrader 4 trading platform.
You can gain access to this folder by clicking the top menu options, that goes as follows:
File > Open Data Folder > MQL4 > Indicators (paste here).
Now go to the left side of your MT4 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.
Click the link below:
The SMA Crossover Signal indicator is well worth adding to your trading collection but remember about having realistic expectations. Just like any other technical analysis tool, is not capable of providing accurate signals 100% of the time. Thus, it will provide false signals occasionally. Its performance will vary significantly depending on market conditions. Feel free to develop your own trading system based around it.