New "Moving Average" on moving averages
The Moving Average indicator is a classic tool for Forex trading; it gained its popularity quite a long time ago, and not without reason.
Quite a few improved scripts have been created based on the standard version of this tool, one of which is presented in this article.
The script is based on the same principles; just like the basic version, it works on the basis of moving averages, although now there are four of them.
And unlike the usual version of the script, the data display is now displayed in a separate window.
This allows you to give a detailed picture of the price movement on the time period of your choice; now you have the opportunity to simultaneously assess the situation on several time frames at once.
It is based on the work of the same Moving Average, so we can hope for similar efficiency.
The Moving Average indicator displays several rows of multi-colored dots in the terminal window, the red ones indicate a decrease in the price of the currency pair, and the blue ones indicate its increase.
Looking at the result obtained, we can now immediately say which trend is currently dominant in the Forex market.
And thanks to the addition of three more moving averages, you can assess not only the current situation, but also track all existing trends.
Setting up Moving Average
Due to the wider capabilities, the indicator settings themselves have expanded significantly; if desired, you can customize each of the displayed lines.
A text file with a detailed description of all possible settings is located in the same archive as the program itself.
Trading.
As noted earlier, each of the moving averages displays data about its own time period, so before you start trading, you should first configure the parameters in accordance with your requirements.
Trading is quite simple.
Buy – all the dots on the indicator have changed their color and become blue, the deal is closed when red dots appear.
Sell – the indicator points turn blue, the order is closed, the same as in the previous case.
In the picture, everything looks quite nice and clear, but you can draw your conclusions only after you test the Moving Average indicator on a real account.
To filter signals, it is advisable to install an additional trend indicator on the chart of the currency pair being traded.