The engulfing moving average Forex signals indicator for MT4 delivers easy-to-trade buy and sell signals that work for any pair and time frame of your choice.
The signals are based on an engulfing moving average.
- A blue UP arrow represents a buy signal.
- A red DOWN arrow represents a sell signal.
You can choose from the following moving average methods:
- Simple
- Exponential
- Smoothed
- Linear weighted
Deploy as a standalone Forex signals indicator or combine with other technical indicators or with price action methods.
Feel free to experiment with the different indicator’s inputs settings to suit your needs and preferences.
Free Download
Download the “engulfing_MA.ex4” MT4 indicator
Indicator Chart (NZD/JPY M5)
The NZD/JPY 5-Minute chart below displays the Engulfing Moving Average Metatrader 4 Forex Signals indicator in action.
Basic Trading Signals
Signals from the Engulfing Moving Average Forex Signals MT4 indicator are easy to interpret and goes as follows:
Buy Signal: Open a buy trade when a blue engulfing arrow appears on the chart. The price is now bullish.
Place a stop loss below support or use your own preferred SL method.
Take profit at an opposite sell signal arrow or at a fixed profit target.
Sell Signal: Open a sell trade when a red engulfing arrow appears on the chart. The price is now bearish.
Place a stop loss above resistance or use your own preferred SL method.
Take profit at an opposite buy signal arrow or at a fixed profit target.
Engulfing MA + Gann Trend Oscillator MT4 Forex Strategy
This strategy combines two powerful tools to capture clean continuation setups in trending markets.
The Engulfing Moving Average Forex Signals Indicator generates clear buy and sell arrows based on engulfing price action around a moving average.
A blue up arrow marks a buy condition, while a red down arrow marks a sell condition.
The Gann Trend Oscillator MTF Indicator confirms the underlying market direction with its color-coded histogram.
Blue bars represent a bullish trend, and violet bars represent a bearish trend.
This combination filters out weak engulfing patterns, ensuring trades are taken only when both price action and trend structure align.
The strategy works well on M15, M30, and H1 charts, making it practical for day traders and steady intraday swing traders.
Buy Entry Rules
- The Gann Trend Oscillator histogram must be blue.
- A blue up arrow must appear from the Engulfing Moving Average indicator.
- Enter long at the close of the arrow candle.
- Stop loss below the previous swing low.
- Take profit options:
- Fixed target: 25–40 pips (M15), 40–70 pips (M30), or 70–120 pips (H1).
- Momentum exit: close the trade as soon as the Gann histogram changes from blue to violet.
- Partial exit: take half profit at a fixed pip target and close the rest when the histogram changes color.
Sell Entry Rules
- The Gann Trend Oscillator histogram must be violet.
- A red down arrow must appear from the Engulfing Moving Average indicator.
- Enter short at the close of the arrow candle.
- Stop loss above the previous swing high.
- Take profit options:
- Fixed target: 25–40 pips (M15), 40–70 pips (M30), or 70–120 pips (H1).
- Momentum exit: close the trade the moment the Gann histogram shifts from violet to blue.
- Partial exit: secure partial profits early, then exit the rest on histogram color change.
Advantages
- Clear arrow-based entries make the system easy to follow.
- Gann histogram filtering removes many losing counter-trend signals.
- Flexible take-profit rules improve adaptability.
- Works well across multiple currency pairs with steady trends.
- Suitable for traders who prefer structured and simple setups.
Drawbacks
- Choppy markets can produce misleading engulfing signals.
- Histogram color changes may occur too early in volatile conditions.
- Trading near strong support or resistance requires caution.
Example Case Study 1: AUD/USD on M30
During the Asian session, AUD/USD entered a steady bullish phase.
The Gann Trend Oscillator printed continuous blue bars, confirming the trend.
After several candles, a blue up arrow appeared from the Engulfing Moving Average indicator following a strong engulfing pattern.
A buy entry was placed at the close. Price advanced smoothly and reached a 45-pip gain.
The histogram stayed blue the entire time, so the position was held until the fixed target was reached.
Example Case Study 2: CAD/JPY on H1
During the London session, CAD/JPY shifted into a bearish swing.
The Gann Trend Oscillator turned violet, indicating a downtrend.
Shortly after, a clean red down arrow appeared from the Engulfing MA indicator. A short entry was taken.
Price dropped steadily for several candles.
Instead of using a fixed take-profit, the trade was managed with the momentum exit rule.
The position was closed when the Gann histogram changed from violet to blue, capturing 82 pips.
Strategy Tips
- Use the Gann histogram as the main trend filter; avoid trades when it is flat or mixed.
- Fixed targets are safer during low volatility, while color-change exits work better in trending markets.
- Pairs like AUD/USD, EUR/USD, CAD/JPY, EUR/JPY, and GBP/USD respond well to this approach.
- Avoid trading engulfing arrows directly into strong support or resistance.
- During strong trends, hold positions longer and trail stops below higher lows or above lower highs.
- Backtest both exit methods to find which performs best for your preferred pair.
Download Now
Download the “engulfing_MA.ex4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (period moving average, MA method, MA price, Alert, draw candle) Width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, Daily, Weekly, Monthly
Type: Moving Average
