The AMA Wave Forex indicator for Metatrader 5 provides robust trading signals by combining the AMA indicator and a smart smoothing filter.
The indicator appears as a sea-green and pink colored signal wave in a dedicated chart window.
To engage in Forex trading using this indicator, follow these guidelines:
- A sea-green AMA wave generates a buy signal.
- A pink colored AMA wave generates a sell signal.
The indicator provides flexibility by allowing customization of various values and parameters, such as AMA period, fast MA period, slow MA period, smoothing, and colors.
Before implementing the AMA Wave indicator in live trading, it is advisable to gain confidence in its functionality by testing it extensively on a demo account.
Remember that, like any other technical indicator, the AMA Wave does not guarantee absolute accuracy in predictions.
Download Indicator
ticker_ama.mq5 Indicator (MT5)
Chart Example
Here is how the AMA Wave Forex indicator appears when applied to the MT5 chart.
How To Buy And Sell Currency Pairs With The AMA Wave Indicator?
Find a simple trading example below:
Buy Signal
- The sea-green colored AMA Wave generates a buy signal.
- Open a buy trade and set a protective stop order below the most recent support region.
- Exit the buy trade for a favorable risk/reward ratio of at least 1.5.
- Alternatively, exit the buy position for a fixed take profit target that suits your preference.
Sell Signal
- The pink colored AMA Wave generates a sell signal.
- Open a sell trade and set a protective stop order above the most recent resistance zone.
- Exit the sell trade for a favorable risk/reward ratio of at least 1.5.
- Alternatively, exit the sell position for a fixed take profit target that suits your preference.
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ticker_ama.mq5 Indicator (MT5)
Adaptive Trend Riding with Strength Index Confirmation MetaTrader 5 Strategy
This strategy integrates the AMA Wave Forex Indicator to identify adaptive trend directions with the Strength Index Signal v1.0 Indicator that measures market momentum strength.
Combining both helps traders ride strong trends confirmed by momentum signals.
Indicators Used
- AMA Wave Forex Indicator: Uses Adaptive Moving Averages to detect smooth trend changes and waves.
- Strength Index Signal v1.0 Indicator: Measures the strength and momentum of the current price movement.
Timeframes
Recommended on M15, M30, and H1 charts for intraday and swing trading.
Buy Entry Rules
- The AMA Wave shows a bullish trend (e.g., price above the AMA wave or wave color turns bullish).
- The Strength Index Signal indicates strong upward momentum (strength value above a predefined threshold or a green signal).
- Enter a long trade at the close of the confirming candle.
- Place a stop-loss below the recent swing low or below the AMA wave support.
- Take profit at the next resistance or use a risk-reward ratio of 1.5 to 2.
Sell Entry Rules
- The AMA Wave shows a bearish trend (e.g., price below AMA wave or wave color turns bearish).
- The Strength Index Signal indicates strong downward momentum (strength value below threshold or red signal).
- Enter a short trade on the candle close when both conditions align.
- Set stop-loss above the recent swing high or above the AMA wave resistance.
- Target the next support level or apply proper risk management.
Strategy Tips
- Wait for both trend and strength signals to align for higher probability entries.
- Avoid trading when the Strength Index shows weak or divergent momentum signals.
- Use multiple timeframes to confirm trend strength and avoid false signals.
Conclusion
Combining adaptive trend detection from the AMA Wave Forex Indicator with momentum confirmation from the Strength Index Signal v1.0 Indicator provides traders with a balanced strategy for entering and riding strong market moves confidently.
Frequently Asked Questions
How Do I Install This Custom Indicator On Metatrader 5?
- Open the MT5 trading platform
- Click on the File menu button located at the top left part of the platform
- Click on Open Data Folder > MQL5 folder > Indicators
- Copy the ticker_ama.mq5 indicator file in the Indicators folder
- Close and restart the trading platform
- You will find the indicator here (Navigator window > Indicators)
- Drag the indicator to the chart to get started with it!
