The LSMA Moving Average indicator for mt4 (Metatrader 4) follows the overall trend and draws a red MA line on the activity chart.
Buy & Sell Trade Example
- Open a buy trade when the candlestick closes above the red MA line.
- Open a sell trade when the candlestick closes below the red MA line.
Feel free to experiment with the indicator’s default period.
The indicator works equally well on all currency pairs (majors, minors and exotic) and shows promising results if used correctly.
Free Download
Download the “lsma.mq4” indicator for MT4
Indicator Chart (EUR/USD Daily)
The example chart below displays the LSMA Moving Average 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 to trade with the LSMA Moving Average 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: Moving average
Does the indicator repaint? No.
LSMA & Trend Predictor Forex Scalping MT4 Strategy
This MT4 scalping strategy combines the LSMA Moving Average and the Trend Predictor v1.0 indicators to catch quick intraday moves on multiple currency pairs.
The LSMA helps identify the overall trend, while the Trend Predictor provides precise entry signals with blue arrows for buy and red arrows for sell.
This strategy works well on 1-minute and 5-minute charts and is suitable for scalpers seeking fast trades on currency pairs such as AUD/USD, USD/CAD, and NZD/USD.
Buy Entry Rules
- Ensure the price is above the LSMA, confirming a bullish trend.
- Wait for a blue arrow from the Trend Predictor, signaling a buy opportunity.
- Enter the trade immediately after the blue arrow appears.
- Place a stop loss just below the most recent minor swing low.
- Set a take profit target of 8–15 pips, depending on market volatility.
- Close the trade immediately if the Trend Predictor arrow changes from blue to red.
Sell Entry Rules
- Ensure the price is below the LSMA, confirming a bearish trend.
- Wait for a red arrow from the Trend Predictor, signaling a sell opportunity.
- Enter the trade immediately after the red arrow appears.
- Place a stop loss just above the most recent minor swing high.
- Set a take profit target of 8–15 pips, depending on market conditions.
- Close the trade immediately if the Trend Predictor arrow changes from red to blue.
Advantages
- Clear and simple scalping signals using trend direction and arrow confirmation.
- Works on multiple currency pairs, including AUD/USD, USD/CAD, and NZD/USD.
- Quick entries and exits allow for rapid profit taking.
- Arrow color change exit rules help minimize losses and protect profits.
- Suitable for 1-minute and 5-minute charts for fast intraday trading.
Drawbacks
- Requires constant monitoring due to fast-moving trades.
- Scalping multiple pairs may lead to overtrading without discipline.
- Small pip targets limit the overall gain per trade.
Example Case Studies
Case Study 1: AUD/USD Scalping
On the AUD/USD 1-minute chart, the price was above the LSMA, confirming a bullish trend.
A blue arrow from the Trend Predictor appeared, signaling a buy entry.
The trader placed a stop loss 6 pips below the swing low and a take profit of 10 pips.
The trade reached the take profit target in 12 minutes.
Shortly after, a red arrow appeared, prompting the trader to close any remaining positions, protecting gains.
Case Study 2: USD/CAD Scalping
On the USD/CAD 5-minute chart, the price was below the LSMA, indicating a bearish trend.
A red arrow from the Trend Predictor triggered a sell trade.
Stop loss was set above the recent swing high, and take profit was set at 12 pips.
The price moved down quickly, hitting the take profit.
When a blue arrow appeared afterward, the trader closed the trade immediately, minimizing exposure to potential reversals.
Strategy Tips
- Focus on high liquidity sessions for tighter spreads and better execution.
- Combine with basic support and resistance levels to increase accuracy.
- Adjust lot sizes according to account balance and risk tolerance.
- Close trades immediately on arrow color change to reduce losses and protect profits.
- Monitor multiple currency pairs but avoid overtrading; focus on the most active pairs.
