The Ama Signals MT4 indicator is a trend-following buy/sell forex signals trading indicator.
The indicator draws two different dot colors, blue and brown.
A blue colored dot indicates the market is trending up. Currency traders look for buy trade opportunities.
On the contrary, a brown colored dot indicates the market is trending down. In this case, traders look for sell trade opportunities.
Ama Signals can be applied to any timeframe and work great for scalpers, day traders and swing traders.
The indicator is beginner friendly and has a good win rate.
Free Download
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Indicator Chart (EUR/USD H1)
The EUR/USD H1 chart below displays the Ama Signals forex indicator in action.
Basic Trading Signals
Trading the Ama Signals forex indicator goes as follows:
Buy Trade: Open buy order when the indicator draws a blue dot(s) on the trading chart.
Sell Trade: Open sell order when the indicator draws a brown dot(s) on the trading chart.
Close the open trade at an opposite signal (from blue to brown or from brown to blue) or use your own method of trade exit.
AMA Signals and Pips Hunter MT4 Trend-Aligned Entry Strategy
This MT4 forex strategy pairs the trend clarity of the AMA Signals Metatrader 4 Forex Indicator with the precise entry arrows of the Pips Hunter Indicator MT4.
The AMA Signals indicator shows the market trend with a blue dotted line for bullish conditions and a red dotted line for bearish conditions.
The Pips Hunter adds entry precision with blue arrows for buy entries and red arrows for sell entries.
By combining trend direction with timed entries, this strategy focuses on higher-probability trades that respect the market’s prevailing momentum.
This approach works best on M15 and M30 timeframes where short to medium swings develop reliably without excessive noise.
Buy Entry Rules
- The AMA Signals indicator shows a blue dotted line, indicating an active bullish trend.
- The Pips Hunter Indicator displays a blue arrow, signaling a buy entry.
- Enter a buy trade at the close of the candle where the blue arrow appears and the AMA trend remains blue.
- Place the stop loss a few pips below the recent swing low or below the most recent consolidation low.
- Set the take profit target at 20-40 pips or near the next visible resistance zone.
Sell Entry Rules
- The AMA Signals indicator shows a red dotted line, indicating an active bearish trend.
- The Pips Hunter Indicator displays a red arrow, signaling a sell entry.
- Enter a sell trade at the close of the candle where the red arrow appears and the AMA trend remains red.
- Place the stop loss a few pips above the recent swing high or above the most recent consolidation high.
- Set the take profit target at 20-40 pips or near the next visible support level.
Advantages
- Combines trend direction with precise entry timing for higher quality signals.
- Clear blue and red visual cues reduce confusion during fast price moves.
- Works reliably on M15 and M30 timeframes where swings are clear and manageable.
- Suitable for traders who want a blend of trend and entry confirmation rather than pure scalping noise.
Drawbacks
- Signals may lag slightly at the start of strong trend reversals since trend confirmation requires the AMA line to change color first.
- Fixed pip targets may sometimes be hit too quickly or fall short in strong trends, requiring adjustments based on market context.
- Requires discipline to wait for both trend and entry conditions without taking early entries.
Case Study 1
On EURUSD M15, the AMA Signals indicator turned blue, indicating bullish trend pressure.
Shortly after the trend turned bullish, the Pips Hunter Indicator printed a blue arrow.
A buy trade was entered at the close of this signal candle.
The stop loss was placed a few pips below the recent swing low.
Price climbed steadily and hit the 25 pip take profit target within the next 8 candles, confirming the strength of the trend and the effectiveness of combining trend direction with entry timing.
Case Study 2
On USDJPY M30, the AMA Signals line turned red, signaling a bearish trend.
A red arrow from the Pips Hunter Indicator appeared while the AMA remained red.
A sell trade was entered at the close of this signal candle and the stop loss was placed a few pips above the recent swing high.
Price continued lower and reached a 42 pip take profit target as the bearish trend developed, demonstrating disciplined trend-aligned entries made with this strategy.
Strategy Tips
- Only enter trades when the AMA Signals trend color matches the Pips Hunter entry arrow to filter false or weak signals.
- Place stop losses just beyond recent swing structure to reflect true market volatility rather than arbitrary pip distances.
- Adjust take profit targets according to local support and resistance levels for better precision and higher probability exits.
- Avoid entering trades when the AMA line is flattening or changing direction, as this often shows a weakening trend.
- Trade during the London and New York sessions, where liquidity is highest and price swings tend to be stronger and more reliable.
- Use a consistent risk per trade approach to protect your capital and maintain long-term profitability.
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Download the “ama-signals.mq4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern
Customization options: Variable (periodAMA, nfast, nslow, G, dK) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: Signals
