The 49/89 colored EMA indicator for MT4 is a complete Forex trading system composed of two colored exponential moving averages.
The main advantage of this indicator is that the EMA colors will change every time the trend reverses in the opposite direction.
So, it’s an easy-to-follow indicator, even for absolute beginners.
In a nutshell, green colored EMA lines suggest that the trend is bullish (buy) while red colored EMA lines suggest that the trend is bearish (sell).
After you have downloaded and installed the indicator on the MT4 trading platform, it should look like the image shown below.
Key Points
- EMA trend system
- EMA periods can be changed
- Well worth adding to your indicator collection
This indicator can work together with any existing trading strategy or system as a simple buy/sell trend reversal entry confirmation tool.
Free Download
Download the “49 89 Colored EMA Indicator System.ex4” MT4 indicator
Indicator Example Chart
The EUR/USD 5-minute chart below shows the 49/89 Colored EMA system indicator in action.
Basic Trading Signals From This Tool
Signals from the 49/89 colored EMA indicator for Metatrader 4 are easy to interpret and go as follows:
BUY:
- Open a buy trade when the two green EMA lines appear on the trading chart.
- Place a stop loss below the most recent swing low point.
- Exit the buy trade for a fixed profit target of your preference, or wait for a sell signal.
SELL:
- Open a sell trade as soon as the two red EMA lines appear on the trading chart.
- Place a stop loss above the most recent swing high point.
- Exit the sell trade for a fixed profit target of your preference, or wait for a buy signal.
Download Now
Download the “49 89 Colored EMA Indicator System.ex4” MT4 indicator
49/89 Colored EMA + RSI Momentum Strategy
This strategy leverages the trend-following power of the 49 and 89-period EMAs along with RSI to confirm momentum.
It helps currency traders capture strong trending moves with better entry timing and fewer false signals.
Required Indicators
- 49/89 Colored EMA Indicator System (available on this page)
- Relative Strength Index (RSI) set to 14 periods (default MT4 indicator)
Timeframes
Ideal for use on the H1, H4, and Daily charts to capture medium to long-term trends.
Buy Entry Rules
- The 49 EMA line is above the 89 EMA line, confirming an uptrend.
- Both EMAs are colored green or indicating bullish momentum as per the indicator.
- RSI is above 50 and ideally crossing upward, confirming bullish momentum.
- Enter a buy trade on the candle following these confirmations.
Sell Entry Rules
- The 49 EMA line is below the 89 EMA line, confirming a downtrend.
- Both EMAs are colored red or indicating bearish momentum as per the indicator.
- RSI is below 50 and ideally crossing downward, confirming bearish momentum.
- Enter a sell trade on the candle following these confirmations.
Stop Loss and Take Profit
- Stop Loss: Place below the recent swing low for buys or above the recent swing high for sells.
- Take Profit: Aim for at least a 1:2 risk-reward ratio or trail your stop based on EMA crossovers.
Why This Strategy Works
The 49/89 EMA crossover provides a clear view of the prevailing trend, while the RSI adds confirmation of momentum strength.
This combination helps filter out false signals and improves trade timing for better results.
Adjustable Parameters & Settings
EMA period, fonts, colors
Feel free to explore the indicator’s different parameters and settings to create your own personalized indicator setup.
More Info About This Indicator
Currency Pairs: works on any currency pair
Trading Platform: developed for Metatrader 4 (MT4)
Time Frames: works on any time frame
Indicator Type: Trend system
How to install the 49/89 Colored EMA indicator in Metatrader 4?
- Copy and paste the 49 89 Colored EMA Indicator System.ex4 indicator into the MQL4 indicators folder.
- You can access this folder from the top menu as follows:
- File > Open Data Folder > MQL4 > Indicators (paste here)
- Close and restart the trading platform
- Add the indicator to a chart to get started
How to remove the indicator from the chart?
- Right-click in the chart
- Select the indicators list
- Click on the indicator’s name
- Click on the delete button
