Introduction to the Var Moving Average Indicator
The Var Moving Average Indicator is a trend following forex trading indicator. That gauge is custom coded, but as you can see on the pictures, it is a variation of Moving Average with additional blue, pink, and also yellow dots. It is rather a simple tool, so it is suitable for both beginners and more advanced forex traders. During strong forex market trends, it is capable of providing genuine money making signals. On the other hand, one should be a bit careful during sideways markets.
The Var Moving Average Indicator fits all kinds of timeframes and currency pairs. It is displayed in a separate window placed just below the main trading chart. The default settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences.
How does it work? How to apply in trading?
Trading Rules Explanation
The Var Moving Average Indicator is made of pink and blue dots which are connected by lines. When these dots are blue it means there is a bullish market and when the dots are pink it means there is a bearish market. Obviously, you should trade accordingly. This indicator also shows reversal points by generating yellow dots in peaks and bottoms, but you can simply ignore these signals, as they occur too often.
Follow these steps for a long trade:
- Manually recognize a forex currency pair that is clearly uptrending
- Price should be bouncing from the recent swing low
- Var Moving Average dots should turn blue
- Buy trade is triggered after the above conditions are met
- Set stop loss a few pips below the last low point of the market
- Take profit or exit trade whenever the Var Moving Average dots turn pink or use your own preffered method of trade exit
Follow these steps for a short trade:
- Manually recognize a forex currency pair that is clearly downtrending
- Price should be pulling back from the recent swing high
- Sell trade is triggered after the above conditions are met
- Set stop loss a few pips above the last high point of the market
- Take profit or exit trade whenever the Var Moving Average dots turn blue or use your own preffered method of trade exit
As always, to achieve good results, remember about proper money management. To be a profitable trader you need to master discipline, emotions, and psychology. It is crucial to know when to trade, but also when not to trade. Avoid trading during unfavorable times and market conditions like low volume/volatility conditions, beyond major sessions, exotic currency pairs, wider spread, etc.
How to set up the Var Moving Average indicator in MT4?
Download the Var Moving Average.rar archive at the bottom of this post, unpack it, then copy and paste the Var Moving Average.ex4 or Var Moving Average.mq4 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, which 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.
The Var Moving Average 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, this forex indicator provides false signals occasionally. Its performance will vary significantly depending on market conditions. Feel free to develop your own trading system based around it.
Var Moving Average Indicator Free Download
To download the Var Moving Average Indicator for Metatrader 4 (MT4) for free just click the button below: