The Kauf WMA Cross Forex Signal indicator for mt4 (Metatrader 4) delivers precise buy and sell signals based on the Kaufman trading method.
The indicator pops up in the main MT4 chart window as yellow and red colored trading signals.
Buy & Sell Trade Example
- A yellow arrow is a buy signal.
- A red arrow is a sell signal.
The indicator can be used as a standalone trading tool for both trade entry and exit or as an additional trend-following filter that works together with an existing strategy of system.
The indicator works equally well on all currency pairs (majors, minors and exotic) and shows promising results if used correctly.
Free Download
Download the “KaufWMAcross.mq4” indicator for MT4
Indicator Chart (EUR/USD Daily)
The example chart below displays the KaufWMACross Forex Signal 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 Kauf WMA Cross Forex Signal 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: Signal
Does the indicator repaint? No.
Kauf WMA Cross + XP Moving Average Scalping Strategy for MT4
This scalping strategy matches the Kauf WMA Cross entry arrows with the XP Moving Average trend line.
The Kauf indicator gives a yellow arrow for buy and a red arrow for sell.
The XP Moving Average shows trend direction with a green line in bullish conditions and a red line in bearish conditions.
Use this method on lower timeframes where quick moves matter. M1 and M5 are best for high action and many small trades.
M15 is also usable when you want slightly wider stops and fewer trades.
This approach suits traders who prefer short holds, fast decisions, and clear exit rules.
The system works because trend alignment reduces losing countertrend entries.
Buy Entry Rules
- Wait for a yellow Kauf arrow to appear on the chart.
- Confirm the XP Moving Average line is green or has just turned green.
- Enter a market buy on the close of the signal candle.
- Set stop loss below the recent swing low or below the low of the signal candle.
- On M1/M5 use 6 to 15 pips depending on pair volatility.
- Set take profit at 1.0 to 1.5 times your stop.
- Typical TP is 8 to 20 pips on majors on M1/M5.
- If price moves quickly in your favor, move stop to break even after half the TP is reached and then trail to protect profits.
Sell Entry Rules
- Wait for a red Kauf arrow to appear on the chart.
- Confirm the XP Moving Average line is red or has just turned red.
- Enter a market sell on the close of the signal candle.
- Set stop loss above the recent swing high or above the high of the signal candle.
- On M1/M5 use 6 to 15 pips depending on pair volatility.
- Set take profit at 1.0 to 1.5 times your stop.
- Typical TP is 8 to 20 pips on majors on M1/M5.
- Trail the stop as the trade moves in your favor to lock gains while giving space for momentum.
Advantages
- Clear and fast rules make execution straightforward.
- The trend filter reduces false entries and keeps trades with momentum.
- Adaptable to many currency pairs and timeframes.
- Short holds cut exposure to overnight events and reduce risk from news shocks.
Drawbacks
- Lower timeframes create noise and occasional whipsaws.
- Small targets mean spread and execution cost matter a lot.
- Multiple losers in a row can occur during low liquidity or choppy conditions.
- The system demands discipline and consistent risk management to be profitable.
Example Case Study 1 — EUR/USD, M5
The XP Moving Average was green, and the market showed mild upward pressure.
A yellow Kauf arrow formed at 1.0850 on the close of a five-minute candle.
Entry was 1.0850. Stop loss placed at 1.0842, eight pips under entry.
Take profit set at 1.0862, twelve pips above entry.
Price moved up and hit the TP. The trade returned +12 pips.
The fixed fractional risk was kept small, and the trade fit the scalping plan.
Example Case Study 2 — GBP/USD, M1
The XP Moving Average turned red, and momentum increased.
A red Kauf arrow printed at 1.2470, and the trader sold at the close of the signal candle.
Stop loss was 1.2478, eight pips above entry. TP was 1.2458, twelve pips below entry.
Price moved sharply down, and the trader trailed the stop after six pips.
The trailing stop closed the trade at 1.2460 for ten pips.
The trailing exit captured most of the move while protecting against reversals.
Strategy Tips
- Always test on a demo and find the best stop size per pair and timeframe.
- Prefer major pairs during active sessions for tighter spreads.
- Avoid trading into major news events that expand spreads and increase false signals.
- Limit risk per trade to a small percentage of equity and use fixed fractional sizing.
- Keep a trade journal. Note why you entered and why you exited to refine the approach.
- Consider adding a simple volatility filter, such as ATR, to avoid very tight or very wide markets.
