The SMA Crossover Signal FX indicator for Metatrader 4 consists of 2 simple moving averages and generates buy & sell signals on the chart.
The indicator appears in the main MT4 chart window as simple-to-use signal arrows.
Trade logic:
- A buy signal occurs when the shorter-term moving averages cross above the longer-term moving average.
- A sell signal occurs when the shorter-term moving averages cross below the longer-term moving average.
The indicator can be used in various ways. I will present you with an example below:
Buy & Sell Trade Example
- A blue arrow is a buy signal.
- A red arrow is a sell signal.
The indicator works equally well on all currency pairs (majors, minors and exotic) and shows promising results if used correctly.
Free Download
Download the “SMA CrossOver.mq4” indicator for MT4
Indicator Chart (EUR/USD H1)
The picture below shows the SMA Crossover Signal FX mt4 indicator in action on the trading chart.
Trading Tips:
Feel free to use your own favorite trade entry, stop loss and take profit method when trading with the SMA Crossover Signal FX indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: SMA
Does the indicator repaint? No.
Trend-Following Strategy for MT4: SMA Crossover Signal + HMA Mega Trend Arrows
This strategy combines the SMA Crossover Signal FX Indicator MT4 with the HMA Mega Trend Arrows Indicator MT4 to trade medium-term trends on M15 and H1 charts.
The SMA Crossover Signal generates clear entry arrows: blue for buy trades and red for sell trades.
The HMA Mega Trend Arrows indicator confirms the overall trend with green arrows for bullish trends and red arrows for bearish trends.
By combining these indicators, traders can enter trades in the direction of the main trend with higher probability.
This strategy is ideal for swing scalpers and day traders who prefer trading M15 and H1 charts.
It works well on major pairs such as EURUSD, GBPUSD, and USDJPY, capturing medium-term intraday trends while reducing the risk of false entries.
Buy Entry Rules
- Confirm the HMA Mega Trend arrow is green, indicating a bullish trend.
- Wait for a blue arrow on the SMA Crossover Signal indicator.
- Enter a buy trade at the close of the candle with the blue arrow.
- Place a stop loss below the recent swing low or a key support level.
- Take profit between 20–40 pips on M15 charts and 40–80 pips on H1 charts, depending on volatility.
Sell Entry Rules
- Confirm the HMA Mega Trend arrow is red, indicating a bearish trend.
- Wait for a red arrow on the SMA Crossover Signal indicator.
- Enter a sell trade at the close of the candle with the red arrow.
- Place a stop loss above the recent swing high or a key resistance level.
- Take profit between 20–40 pips on M15 charts and 40–80 pips on H1 charts, depending on volatility.
Advantages
- Combines precise SMA crossover signals with trend confirmation for higher accuracy.
- Works on M15 and H1 charts, capturing medium-term intraday trends.
- Signal arrows make entries easy to spot and execute.
- Helps traders stay aligned with the trend and avoid counter-trend trades.
- It can be applied across major currency pairs with consistent volatility.
Drawbacks
- Requires monitoring multiple time frames for optimal entries.
- Spread and slippage can impact profitability, especially on M15 charts.
Case Study 1: EURUSD M15 – London Session
During the London session, EURUSD displayed a green HMA Mega Trend arrow, confirming a bullish trend.
A blue arrow appeared on the SMA Crossover Signal indicator at 1.1005.
A buy trade was entered with a stop loss at 1.0995.
Within 45 minutes, the price reached 1.1040, yielding a 35-pip profit.
The combination of SMA crossover and trend confirmation produced a strong intraday setup.
Case Study 2: GBPUSD H1 – New York Session
GBPUSD on the H1 chart showed a red HMA Mega Trend arrow, indicating a bearish trend.
A red arrow appeared at 1.2785 on the SMA Crossover Signal indicator.
A sell trade was executed with a stop loss at 1.2800.
Price dropped to 1.2745 within two hours, yielding a 40-pip gain.
Strategy Tips
- Trade during active sessions for higher probability trend continuation.
- Use both M15 and H1 charts together to confirm trend strength and entry timing.
- Adjust take profit targets based on volatility and session; M15 trades capture smaller intraday moves, H1 trades capture larger swings.
- Maintain disciplined stop loss placement to manage risk during reversals.
- Focus on major currency pairs with low spreads to improve profit potential.
- Wait for clear alignment of both SMA crossover and HMA Mega Trend signals before entering.
By combining the SMA Crossover Signal MT4 and HMA Mega Trend Arrows MT4 indicators, this M15 and H1 strategy allows traders to follow medium-term trends with precise entries and exits.
Proper risk management and trend confirmation are key to maximizing profitability.
