Moving Average MT4 Indicator and Moving Average Signals

An MT4 Indicator that calculates the average value of prices (or any specified data sequence) over a pre determined period of time.

The only significant difference between the various types of MAs is the weight allocated to the most recent data. Simple moving averages apply equal weight to the prices. Exponential and weighted averages apply more weight to recent prices.

Explanation

The most popular method of interpreting the MA is to compare the relationship between the MA of the price with the price itself. A buy signal is generated when the price rises above its MA and a sell signal is generated when the price falls below its MA.

MA MT4 Indicator

Buy & Sell Signals generated by MA crossing above or below the price action.

Moving Average Crossover Forex Strategy

Also popular are various types of moving average crossover systems. Such systems often include two or more moving averages crossing above/below each other and perhaps even utilizing other MT4 Indicators as additional entry and exit confirmation signals. The combinations of conditions for these types of trading systems are almost limitless.

Moving Average Crossover System