Var Moving Average Indicator
Platform: MT4 Type: Trend Last update: October 19, 2024The Var Moving Average Indicator for MT4 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.
How to apply the Var Moving Average in trading?
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.
Buy Signal
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
- 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 dots turn pink or use your own preffered method of trade exit
Sell Signal
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
- Dots should turn pink
- 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 dots turn blue or use your own preffered method of trade exit
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