The 20/34 Forex signal indicator for Metatrader 5 is a powerful oscillator that relies on a combination of a simple and exponential moving average.
The indicator gets loaded in a dedicated chart window as a series of colored histogram bars that oscillate above and below 0.
To determine the market state using this indicator, the following guidelines can be followed:
- Histogram bars above 0 indicate a bullish market trend.
- Histogram bars below 0 indicate a bearish market trend.
The indicator contains the following inputs and parameters: SMA period (34), EMA period (20), price constant, horizontal shift, and colors.
Make yourself familiar with this technical indicator and test it first on a demo account for an extended period.
The 20/34 Forex Signal indicator can be effectively utilized in conjunction with any trading strategy to enhance trend confirmation.
Alternatively, it can be used as a standalone tool to generate buy/sell signals.
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Chart Example
The image below illustrates what the 20/34 Forex Signal indicator looks like when applied to the MT5 chart.
How To Buy And Sell Trading Instruments With The 20/34 Forex Signal Indicator?
Find a simple trading example below:
Buy Signal
- The appearance of the first colored 20/34 histogram bar above 0 generates a buy signal.
- Execute a buy market order and set a stop loss below support.
- Exit the buy trade for a minimal risk to reward ratio of 1.5.
- Alternatively, close and reverse the buy trade when the oscillator turns back below 0, indicating a bearish trend reversal.
Sell Signal
- The appearance of the first colored 20/34 histogram bar below 0 generates a sell signal.
- Execute a sell market order and set a stop loss above resistance.
- Exit the sell trade for a minimal risk to reward ratio of 1.5.
- Alternatively, close and reverse the sell trade when the oscillator turns back above 0, indicating a bullish trend reversal.
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Frequently Asked Questions
How Do I Install This Custom Indicator On Metatrader 5?
- Open the MT5 trading platform
- Click on the File menu button located at the top left part of the platform
- Click on Open Data Folder > MQL5 folder > Indicators
- Copy the ianchmom.mq5 indicator file in the Indicators folder
- Close and restart the trading platform
- You will find the indicator here (Navigator window > Indicators)
- Drag the indicator to the chart to get started with it!
How Do I Edit This Indicator?
- Click in the open chart with your right mouse button
- In the dropdown menu, click on Indicator List
- Select the indicator and click on properties
- Now you can edit the inputs, colors, levels, scale and visualization
- Finally click the OK button to save the new configuration
