The 5 MA’s Signal forex indicator for MT4 consists of 5 simple moving averages with periods set at 8, 21, 50, 100 and 200 respectively.
All combined together creates a stand alone trend following crossover trading system.
The different moving averages use the following colors:
- 8 MA: sienna color
- 21 MA: green color
- 50 MA: blue color
- 100 MA: red dotted color
- 200 MA: red color
The two most interesting moving averages to trade off are the 200 period moving average and the 50 period moving average
- A bullish trend occurs when the 50 period MA crosses above the 200 period MA from below
- A bearish trend occurs when the 50 period MA crosses below the 200 period MA from above
These combinations work pretty well for trend trading.
The 21 MA and the 8 MA can be used for scalping in the direction of the underlying trend as defined by the 200 MA and 50 MA crossover system. Learn more below how it works.
Feel free to experiment with different moving average periods to suit your needs.
Free Download
Download the “carter-ma-indicator.mq4” MT4 indicator
Indicator Chart (AUD/USD H1)
The AUD/USD 1-Hour chart below displays the 5 MA’s Signal Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the 5 MA’s Signal MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Initiate buy position when the 50 period moving average crosses back above the 200 period moving average from below.
Buy Scalp Trade: Open buy scalp when the 8 MA crosses back above the 21 MA from below and the 50 period MA is positioned above the 200 period MA.
Sell Signal: Initiate sell position when the 50 period moving average crosses back below the 200 period moving average from above.
Sell Scalp Trade: Open sell scalp when the 8 MA crosses back below the 21 MA from above and the 50 period MA is positioned below the 200 period MA.
Trade Exit: Use your own method of trade exit.
5 MAs Signal + Waddah Attar MT4 Scalping Strategy
This MT4 scalping strategy combines the powerful trend detection of the 5 MAs Signal MT4 indicator with the momentum signals from the Waddah Attar Forex Scalping Indicator MT4.
The strategy works best on M1 and M5 charts, making it ideal for traders who want to capture quick moves in the market.
It is suitable for both beginner and experienced traders as it provides clear buy and sell signals along with defined risk management.
By combining trend direction and momentum strength, this strategy reduces false entries and improves trading accuracy.
Buy Entry Rules
- Identify a bullish trend when the 50-period MA crosses above the 200-period MA on the 5 MAs Signal indicator.
- Confirm momentum by checking the Waddah Attar histogram. Enter a buy when the histogram turns green and above the signal threshold.
- Place the stop loss just below the recent swing low to limit risk.
- Set take profit at a 1:2 risk-to-reward ratio or target the next resistance level.
Sell Entry Rules
- Identify a bearish trend when the 50-period MA crosses below the 200-period MA on the 5 MAs Signal indicator.
- Confirm momentum by checking the Waddah Attar histogram. Enter a sell when the histogram turns red and exceeds the signal threshold.
- Place the stop loss just above the recent swing high to limit risk.
- Set take profit at a 1:2 risk-to-reward ratio or target the next support level.
Advantages
- Provides clear trend and momentum signals for accurate entries.
- Works on short timeframes like M1 and M5 for fast scalping opportunities.
- Reduces false trades by combining trend confirmation and momentum strength.
- Easy to follow for traders of all levels with minimal guesswork.
Drawbacks
- May produce fewer signals in sideways or choppy markets.
- Short timeframes can be affected by market noise.
- Requires monitoring charts closely for optimal execution.
- Stop loss and take profit levels must be adjusted according to volatility.
Example Case Studies
Case Study 1
On the EUR/USD M5 chart, the 50 MA crossed above the 200 MA, signaling a bullish trend.
The Waddah Attar histogram turned green above the threshold, confirming strong momentum.
A buy was entered at 1.1020 with a stop loss at 1.1005 and take profit at 1.1045.
The trade captured 25 pips within 15 minutes, demonstrating the effectiveness of combining trend and momentum indicators for fast scalping trades.
Case Study 2
On the GBP/USD M1 chart, the 50 MA crossed below the 200 MA, signaling a bearish trend.
The Waddah Attar histogram turned red, confirming strong selling pressure.
A sell entry was placed at 1.3050 with a stop loss at 1.3062 and take profit at 1.3026.
The trade resulted in 24 pips gain in under 10 minutes, highlighting the strategy’s ability to capture quick, profitable moves in volatile markets.
Strategy Tips
- Use multiple timeframes to confirm trend direction. Check M15 or M30 for the overall trend before entering on M1 or M5.
- Only take trades that align with both indicators. Avoid entering if the trend is bullish but momentum is weak, or vice versa.
- Keep a trading journal to track your entries, stop loss levels, and take profit results. This helps identify patterns and improve consistency.
- Consider partial exits if the trade moves quickly. You can close half at the first target and let the rest run for maximum profit.
- Adjust your stop loss dynamically to breakeven once the trade moves in your favor to protect capital.
- Avoid trading during low liquidity hours, such as late New York or Asian sessions, as scalping opportunities may be limited.
- Practice patience. Wait for clear confirmation from both the 5 MAs Signal and Waddah Attar indicators before entering trades.
- Combine this strategy with basic candlestick patterns to improve entry timing, such as pin bars or engulfing candles at support/resistance levels.
Download Now
Download the “carter-ma-indicator.mq4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (MA 1, MA 2, MA 3, MA 4, MA 5) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: trend
