4 MA Strength Forex Indicator (MT4)

About the 4 MA Strength Indicator

The 4 MA Strength Forex Indicator for MT4 is a trend-following tool that combines four moving averages to assess market strength and direction.

It displays its signals as colored histogram bars in a separate window, making it easy to identify potential buy or sell opportunities based on trend momentum.

Key Features

• Four Moving Averages: Utilizes a combination of four moving averages to determine market strength and direction.
• Histogram Display: Shows colored bars representing the difference between the moving averages, indicating trend strength.
• Color-Coded Signals: Green bars signal a bullish trend, while pink bars indicate a bearish trend.
• Customizable Settings: Allows traders to adjust the periods of the moving averages to suit their trading strategy.
• Non-Repainting: Once a bar is formed, it does not change, ensuring reliable signals.

How It Works

1. Trend Analysis: The indicator calculates the difference between four moving averages to assess the strength of the current trend.
2. Signal Generation: When the difference is positive and above a certain threshold, a green bar appears, signaling a potential buy. Conversely, a negative difference results in a pink bar, indicating a potential sell.
3. Confirmation: Traders can use these signals in conjunction with other technical indicators or price action to confirm trade entries.

Free Download

Download the “4-ma-strength-indicator.mq4” indicator for MT4

Benefits of Using This Indicator

• Clear Trend Identification: Easily identifies the strength and direction of the market trend.
• Visual Clarity: The histogram display provides a clear visual representation of market strength.
• Adaptability: Suitable for various timeframes and currency pairs.
• Non-Repainting: Ensures that once a signal is given, it remains valid, reducing false signals.
• Customizable: Traders can adjust settings to align with their trading strategy.

Indicator Example Chart (EUR/USD M30)

How to Trade Using This Indicator

Trade Signals

• Buy Signal: Enter a long position when the first green bar appears, indicating a bullish trend.
• Sell Signal: Enter a short position when the first pink bar appears, indicating a bearish trend.

Stop-Loss & Take-Profit Setup

• Stop-Loss: Place just below the recent swing low for Buys or above the swing high for Sells, with a buffer of 5–10 pips.
• Take-Profit: Target recent swing highs/lows or use a risk-to-reward ratio of 2:1.

Example Trade Setup

1. EUR/USD M30: A green bar appears above the zero line → Buy signal.
2. Enter at the close of the bar.
3. Place Stop-Loss below the recent swing low (~10 pips).
4. Set Take-Profit at the next resistance level or apply a 2:1 R/R ratio.

Download Now

Download the “4-ma-strength-indicator.mq4” indicator for Metatrader 4

4 MA Strength + XTC Trend Forex Strategy for MT4

This strategy merges the multi-timeframe moving average strength analysis of the 4 MA Strength Forex Indicator with the directional clarity of the XTC Forex Trend Indicator.

By combining these tools, traders can identify high-quality trades where trend strength and direction align across timeframes.

What is this Strategy About?

The 4 MA Strength Indicator evaluates the position of four moving averages across multiple timeframes to gauge whether a currency pair is trending or consolidating.

It displays color-coded strength levels, allowing traders to trade only when the trend is strong and aligned.

The XTC Trend Indicator detects current trend direction using a smoothed trend model and visually marks buy or sell zones directly on the chart.

This strategy is designed for traders who want to follow the trend but with additional confirmation that the momentum is sustained across different timeframes.

It is particularly effective on the M30 and H1 charts for intraday or swing trading.

Buy Setup Rules

• Wait for the 4 MA Strength Indicator to show a strong bullish reading (e.g., all or the majority of MA strength bars are green).
• Confirm the uptrend with a bullish signal from the XTC Forex Trend Indicator (e.g., green background or upward signal).
• Enter a buy trade on the next candle after both confirmations.
• Stop Loss: Place below the most recent swing low or below a support level.
• Take Profit: Use a 1:2 or 1:3 risk/reward ratio, or trail stop loss as price moves up.

Sell Setup Rules

• Wait for the 4 MA Strength Indicator to show strong bearish alignment (e.g., red bars across all or most timeframes).
• Confirm a downtrend with a bearish signal from the XTC Trend Indicator (e.g., red background or downward arrow/signal).
• Enter a sell trade at the close of the confirmation candle.
• Stop Loss: Place above the recent swing high or resistance level.
• Take Profit: Use a fixed risk/reward ratio (1:2 or more), or scale out at the next support zone.

Advantages of the Strategy

• Uses multiple timeframes for better trend strength analysis.
• Combines momentum with directional clarity for precise entries.
• Minimizes false signals through dual confirmation.
• Highly visual and easy to follow, suitable for beginner to advanced traders.

Drawbacks

• Fewer trade setups due to strict filtering rules.
• May lag slightly during sudden market reversals.
• Less effective in flat or sideways market conditions.

Strategy Conclusion

The 4 MA Strength + XTC Trend Strategy is a smart, confirmation-based system that ensures you’re only trading in strong, aligned market conditions.

It offers an excellent balance between trend-following and entry precision, making it ideal for traders who want to avoid noise and stick to high-probability setups.

Try this strategy on a demo account to fine-tune your parameters before going live.

Back-Test Insights, Pros & Cons

Back-Test Results

• Effective in trending markets with clear directional movement.
• Success rate increases when used in conjunction with other trend-confirming indicators.

Pros

• Simple and easy to interpret signals.
• Provides clear visual cues for trade entries.
• Customizable to fit different trading strategies.

Cons

• May produce false signals in choppy or sideways markets.
• Requires confirmation from other indicators or price action for best results.
• Not suitable for scalping due to its focus on longer-term trends.

Indicator Specifications

Final Words

The 4 MA Strength indicator is a valuable tool for traders seeking to identify and confirm trends in the Forex market.

Its clear visual signals and customizable settings make it adaptable to various trading strategies.

By combining this indicator with other technical analysis tools, traders can enhance their decision-making process and improve their trading outcomes.