About the FATL 4 MA’s Indicator
The FATL 4 MA’s Indicator for MT4 is a free trend-following tool that uses four moving averages to help traders identify market direction.
Displayed directly on the main MT4 chart, the indicator provides a clear view of trend alignment and potential entry points.
By tracking price relative to the Indian Red moving average line, traders can pinpoint optimal moments to enter buy or sell trades.
This multi-MA system works across all timeframes and currency pairs, making it suitable for scalping, day trading, and swing trading.
The FATL 4 MA’s system can be used on its own or combined with other technical tools to confirm trend strength and improve trade accuracy.
Free Download
Download the “fatl-indicator.mq4” indicator for MT4
Key Features
- Four moving averages for visual trend analysis
- IndianRed line indicates primary buy/sell trigger
- Helps identify trend direction and market momentum
- Can be combined with oscillators or trend indicators for confirmation
Indicator Chart
The chart below shows the FATL 4 MA’s Indicator applied on MT4.
Traders can see the four moving averages plotted on the chart, with the IndianRed line acting as the main signal.
A candlestick closing above the Indian Red line indicates a buy opportunity, while a close below signals a sell.
This setup makes it easier to follow trends and time entries effectively.
Guide to Trade with the FATL 4 MA’s Indicator
Buy Rules
- Enter a buy trade when a candlestick closes above the IndianRed moving average line
- Confirm upward momentum with the alignment of the other three moving averages
- Check higher timeframe trends to ensure the move is in the main market direction
- Look for supporting price action signals such as bullish candlestick patterns near the Indian Red line
Sell Rules
- Enter a sell trade when a candlestick closes below the IndianRed moving average line
- Confirm downward momentum with the alignment of the remaining three moving averages
- Verify that the trend on higher timeframes supports the sell direction
- Look for bearish candlestick confirmations near the Indian Red line before entering
Stop Loss
- Place stop loss just beyond the nearest swing high for sells or swing low for buys
- For short-term trades, use tighter stops to minimize losses
- ATR-based stops can help adjust for changing market conditions dynamically
Take Profit
- Set initial take profit near the next support (for buys) or resistance (for sells)
- Partial profit-taking can secure gains while leaving room for extended trends
- Close the trade if a candlestick closes back across the IndianRed line in the opposite direction
- Consider using trailing stops to follow long trends and maximize gains
Practical Tips
- Combine with momentum indicators like RSI or MACD for added confirmation
- Monitor higher timeframes to align trades with the overall trend
- Use during active trading sessions for faster and more reliable trend signals
- Keep a trading journal to track the effectiveness of the 4 MA setup and optimize entries
FATL 4 MAs Indicator + Hourly Pivot Points Forex Intraday Strategy for MT4
This strategy uses the FATL 4 MAs Indicator to generate trend-based entries and the Hourly Pivot Points Indicator to provide support/resistance and structure.
The simple rule from the FATL 4 MAs is: buy when the price closes above the IndianRed MA line, sell when it closes below.
The pivot levels help define potential areas to take profits or avoid entries too close to strong resistance/support.
It works best on 5-minute and 15-minute charts, during active market hours, for traders who prefer well-defined entries and exits within the day.
Setup
- Attach the FATL 4 MAs indicator to your MT4 chart.
- Attach the Hourly Pivot Points indicator to the same chart.
- Use major currency pairs (EURUSD, GBPUSD, USDJPY, etc.).
- Use timeframes like M5 or M15.
- Make sure the pivot levels (especially hourly pivot, S1/S2, R1/R2) are visible.
Buy Entry Rules
- The candlestick must close above the IndianRed colored MA line in the FATL 4 MAs indicator.
- Confirm that the overall trend is upward (MAs sloping upward or aligned bullishly).
- Verify that the close is not too close to a strong resistance pivot (e.g., just under R1 or R2).
- Enter the market buy on that candle’s close.
- Stop loss: just below the IndianRed MA line or a recent swing low.
- Take profit: target a pivot level above (e.g., next pivot resistance such as R1 or R2).
- Optionally, partial exit at first pivot, trail remainder.
- If price closes back below the IndianRed MA before reaching the target, exit early to protect capital.
Sell Entry Rules
- The candlestick closes below the IndianRed colored MA line.
- Confirm trend is downward (MAs sloping downward or aligned bearishly).
- Avoid entries too close to strong support pivot (e.g., just above S1 or S2).
- Enter the market sell on the candle close.
- Stop loss: just above the IndianRed MA line or recent swing high.
- Take profit: target the next lower pivot support (S1 or S2). Use partial target or trailing.
- If the price closes back above the IndianRed MA before reaching the profit zone, exit early.
Advantages
- Very simple and clear entry rule (close above/below one line).
- Pivot levels give structure to take profits or avoid poor price zones.
- Works well during trending periods.
- Intraday style — you don’t hold overnight.
- Can be used across several currency pairs.
Drawbacks
- In range or choppy markets, many false signals will appear.
- Entry may occur too early or too late relative to the pivot zones.
- Pivot levels might act as a magnet and slow moves.
- Spread and slippage may erode gains, especially on smaller moves.
- Requires managing exits actively.
Example Case 1 — EURUSD, 5-Minute, Buy
Suppose the price of EURUSD is above most of the MAs and trending upward.
A candle closes above the Indian Red MA line. The nearest pivot resistance is R1 above.
You enter a buy on that close, set SL just below the line, and target R1. Price moves toward R1, and you take profit.
If price reverses and closes below the IndianRed MA line before reaching R1, you exit early.
Example Case 2 — GBPUSD, 15-Minute, Sell
In a downward-trending environment, a candle closes below the Indian Red MA line.
You enter a sell trade. The pivot support S1 is below; that becomes your target.
SL is above the MA line or recent swing high. Price drops toward S1, you take partial profits, and trail for more.
If price closes back above the MA line before S1, exit to avoid reversal losses.
Strategy Tips
- Trade during high-volume hours (London open, New York open).
- Avoid trading just before or during major news events.
- Use a modest risk size (0.5 % to 1 % of the account) because intraday trading can have many small losers.
- Use pivot levels as guides: if the entry is too close to pivot resistance (for buy) or pivot support (for sell), the trade may have less room.
- You may combine with additional filters (e.g., a momentum indicator) to filter weaker entries.
Download Now
Download the “fatl-indicator.mq4” indicator for Metatrader 4
FAQ
What is the main signal of the FATL 4 MA’s Indicator?
The main signal comes from the Indian Red moving average line. A candlestick closing above it indicates a buy, while a close below indicates a sell.
Can it be used for scalping?
Yes. The indicator works on all timeframes, allowing scalpers to capture quick trend-based trades as well as intraday or swing trades.
How do the other three moving averages help?
The other three moving averages confirm the trend direction, filtering out false signals and strengthening trade confidence.
Summary
The FATL 4 MA’s Indicator for MT4 is a reliable trend-following tool that uses four moving averages to identify market direction.
By following the IndianRed line as the primary signal, traders can enter buy or sell trades in line with the trend while using the remaining averages for confirmation.
This system works across multiple timeframes and currency pairs, making it suitable for scalping, intraday, or swing trading.
When combined with other indicators or price action signals, it enhances trade accuracy and helps traders manage risk effectively.
