About the Moving Average Combo Signals Indicator
The Moving Average Combo Signals indicator for MT4 is a practical trend-following tool built around the interaction of three moving averages.
It combines a fast, medium, and slow moving average to identify directional bias and generate timely buy and sell signals directly on the chart.
When market conditions align, the indicator prints a green arrow for bullish setups and a red arrow for bearish setups.
The default moving average periods are set to 5, 20, and 34, offering a balanced mix of responsiveness and stability.
These settings can be adjusted to better match different trading styles or market conditions.
The indicator works smoothly across lower and higher timeframes, making it useful for scalping, intraday trading, and longer-term positions.
Free Download
Download the “3-ma-buy-sell.mq4” MT4 indicator
Key Features
- Uses three moving averages to define trend direction.
- Displays green and red arrows for buy and sell signals.
- Fully customizable moving average periods.
Indicator Chart
The Moving Average Combo Signals indicator shows buy and sell arrows plotted directly on the price chart.
Green arrows highlight bullish crossover conditions, while red arrows indicate bearish alignment.
Guide to Trade with the Moving Average Combo Signals Indicator
Buy Rules
- Wait for a green arrow to appear on the MT4 chart.
- Confirm price is trading above the slow moving average.
- Ensure recent candles support upward price movement.
- Enter the buy trade at the close of the signal candle.
Sell Rules
- Wait for a red arrow to appear on the MT4 chart.
- Confirm price is trading below the slow moving average.
- Check that recent candles support downward movement.
- Enter the sell trade at the close of the signal candle.
Stop Loss
- For buy trades, place the stop loss below the slow moving average.
- For sell trades, place the stop loss above the slow moving average.
- Adjust the stop loss if the slow MA shifts significantly.
- Exit the trade if price closes beyond the slow MA against the position.
Take Profit
- Close the trade when an opposite arrow signal appears.
- Trail the stop loss along the medium moving average.
- Target nearby support or resistance levels.
- Optionally use a predefined risk-to-reward ratio.
Moving Average Combo + Precision Trend Histogram MT4 Forex Strategy
This strategy combines the Moving Average Combo Signals MT4 Forex Indicator and the Precision Trend Buy Sell Histogram MT4 Forex Indicator to capture high-probability trades.
The Combo Signals indicator draws green arrows for buy signals and red arrows for sell signals.
The Precision Trend Histogram shows green bars for bullish trends and red bars for bearish trends.
By only taking trades when the signal arrow aligns with the trend histogram, traders reduce false entries.
This strategy works well on M5, M15, and H1 charts for intraday trading on major currency pairs.
Buy Entry Rules
- Wait for a green arrow from the Moving Average Combo Signals indicator.
- Confirm the Precision Trend Histogram shows green bars at or just before the arrow appears.
- Enter a buy trade at the next candle open after the signal and confirmation.
- Set stop loss a few pips below the recent swing low or nearby support.
- Take profit when histogram bars turn red, price reaches a swing high, or use a trailing stop to capture extended moves.
Sell Entry Rules
- Wait for a red arrow from the Moving Average Combo Signals indicator.
- Confirm the Precision Trend Histogram shows red bars at or just before the arrow appears.
- Enter a sell trade at the next candle open after the signal and confirmation.
- Set stop loss a few pips above the recent swing high or nearby resistance.
- Take profit when histogram bars turn green, price reaches a swing low, or use a trailing stop.
Advantages
- Combines signal arrows with trend confirmation to reduce false entries.
- Works on multiple timeframes: M5, M15, H1.
- Clear trading rules make it easy to follow and backtest.
- The trend histogram shows trend strength to improve entry confidence.
- Stop loss and take profit levels are well-defined for risk management.
Drawbacks
- Signals may lag price slightly, missing some initial pips.
- Sideways markets reduce histogram effectiveness, causing false signals.
- Frequent trades on M5 can increase spread and slippage costs.
- Requires discipline to wait for both signal and histogram confirmation.
- Price may behave unpredictably during major news events.
Case Study 1: EUR/USD on M5
On the 5-minute EUR/USD chart, a green arrow appeared at 1.1010 while the Precision Trend Histogram showed green bars.
A buy trade was entered at 1.1012 with a stop loss at 1.1004.
Price moved to 1.1030, reaching a swing high, giving a gain of 18 pips within 25 minutes.
Case Study 2: GBP/JPY on M15
On the 15-minute GBP/JPY chart, a red arrow appeared at 159.85 and the histogram confirmed a bearish trend with red bars.
A sell trade was entered at 159.83 with a stop loss at 160.00.
Price dropped to 159.50, hitting the next support level, for a profit of 33 pips over 45 minutes.
Strategy Tips
- Trade during active sessions for higher volatility and better follow-through.
- Check higher timeframe trends to align trades with the overall market direction.
- Adjust position size according to volatility and timeframe.
- Consider a volatility filter to skip low-volume periods.
- Keep a trading journal for entries, exits, and pip results to improve performance.
- Use trailing stops to maximize profits on strong trends.
Download Now
Download the “3-ma-buy-sell.mq4” Metatrader 4 indicator
FAQ
How does this indicator reduce false signals?
By requiring alignment between three moving averages, the indicator filters out many weak crossovers that occur during choppy price action.
Can the moving average types be changed?
Yes, the indicator allows you to choose between simple, exponential, smoothed, and linear weighted moving averages from the inputs tab.
Which timeframes work best with this indicator?
Lower timeframes respond faster and suit scalping, while higher timeframes provide smoother signals for swing trading.
Should this indicator be used alone?
It can be used standalone, but combining it with support and resistance or price action analysis often improves consistency.
Summary
The Moving Average Combo Signals MT4 indicator offers a clean and efficient way to trade moving average crossovers without manual analysis.
Its arrow-based signals simplify execution while still respecting broader trend direction.
With adjustable settings and compatibility across multiple timeframes, it adapts well to different trading approaches.
Traders who value simplicity and trend confirmation will appreciate how this indicator balances clarity with flexibility.
Fine-tuning the moving average periods and combining the signals with basic market context can further improve overall performance.
