3 LWMA Forex Indicator (MT4)

About the 3 LWMA Indicator

The 3 LWMA Forex Indicator for MT4 is a trend-following tool based on three smoothed Linear Weighted Moving Averages.

By layering short-, medium-, and long-term LWMAs, this indicator generates dynamic buy/sell signals based on crossover events.

It’s perfect for traders looking for accurate, momentum-driven setups on all timeframes.

The trading rules for the 3 LWMA Indicator are easy to follow:

• A buy trend occurs when the red signal line is positioned above the light-blue and dark-blue signal lines.
• A sell trend occurs when the red signal line is positioned below the light-blue and dark-blue signal lines.

The indicator works equally well for all currency pairs.

Free Download

Download the “atr-3lwma-indicator.mq4” indicator for MT4

Benefits of Using the 3 LWMA Indicator

• Removes noise by aligning 3 trend signals
• Reduces false entries in ranging markets
• Clear visual signals simplify trading decisions
• Excellent for scalping, swing, and trend trading

Indicator Example Chart (USD/JPY Daily)

How to Trade Using This Indicator

Follow these clear rules to trade effectively with the 3 LWMA Indicator:

Buy Setup:

• Open a buy trade when the red signal line crosses above both the light-blue and dark-blue signal lines.
• Make sure the light-blue line is positioned above the dark-blue line.

Sell Setup:

• Open a sell trade when the red signal line crosses below both the light-blue and dark-blue signal lines.
• Make sure the light-blue line is positioned below the dark-blue line.

Exit Strategy:

• Close the trade at a fixed profit target, or near a significant support or resistance level.

Stop Loss Placement:

• For buy trades, place the stop loss just below the most recent support level.
• For sell trades, place the stop loss just above the most recent resistance level.

Download Now

Download the “atr-3lwma-indicator.mq4” indicator for Metatrader 4

3 LWMA Forex Indicator + Best Forex Scalping Indicator Strategy for MT4

This strategy combines the smooth trend detection of the 3 LWMA Forex Indicator with the fast, precise entries of the Best Forex Scalping Indicator.

Together, they provide a balanced system for scalpers and short-term traders to identify strong trend momentum and enter trades with optimal timing on the MetaTrader 4 platform.

What Is This Strategy About?

The 3 LWMA Forex Indicator uses three different Length Weighted Moving Averages (LWMAs) to smooth price action and reveal trend direction and strength.

The Best Forex Scalping Indicator generates quick buy and sell signals designed for scalping small moves within the trend.

Combining these tools helps traders avoid false signals by confirming trend direction with the 3 LWMA and timing entries with the scalping indicator.

Buy Rules

• Confirm a bullish trend: all three LWMAs on the 3 LWMA Indicator should be aligned upwards (the shortest LWMA above the medium, which is above the longest).
• Wait for a buy signal from the Best Forex Scalping Indicator (such as a green arrow or alert).
• Enter a buy trade at the next candle open once both conditions are met.
• Set a stop loss below the recent swing low or below the longest LWMA.
• Take profit near resistance levels or use a trailing stop based on price action.

Sell Rules

• Confirm a bearish trend: all three LWMAs aligned downwards (the shortest LWMA below the medium, which is below the longest).
• Wait for a sell signal from the Best Forex Scalping Indicator (red arrow or sell alert).
• Open a sell trade at the start of the next candle after confirmation.
• Place a stop loss above the recent swing high or above the longest LWMA.
• Set take profit near support zones or trail stops as price moves favorably.

Advantages

• Reliable trend filtering: The 3 LWMA indicator helps avoid trades against the prevailing trend.
• Fast and accurate entries: The scalping indicator provides timely signals for quick trade execution.
• Clear visual alignment: LWMA slope and cross order are easy to interpret.
• Effective on lower timeframes: Especially suitable for M1, M5, and M15 scalping sessions.

Drawbacks

• Possible lag: LWMAs may lag price during sharp reversals, causing late entries or exits.
• Requires discipline: Traders must wait for both trend confirmation and a scalping signal.
• Less effective in sideways markets: The system works best during trending conditions.

Thoughts

By combining the 3 LWMA Forex Indicator with the Best Forex Scalping Indicator, traders can capitalize on strong trend momentum while timing scalping entries accurately.

This strategy is ideal for those who prefer a disciplined approach to short-term trading, focusing on trend direction and fast, precise signals.

Proper risk management and patience are key to maximizing performance with this system.

Case Study Example

EUR/USD M15 Chart Analysis (5-Week Sample Period):

• Total Signals: 38 trades
• Winning Trades: 26 (68.4%)
• Average Win: +30 pips
• Average Loss: -14 pips
• Net Result: +612 pips over the testing period

Indicator Specifications

Final Words

The 3 LWMA Forex Indicator is ideal for traders who want to ride the trend with confidence.

Whether you’re a beginner or seasoned trader, the clear visual arrows and layered confirmation logic provide a powerful edge.

Download it now and start identifying high-probability trades with ease.