About the Average of 18 Moving Averages Indicator
The Average of 18 Moving Averages Indicator for MT5 is a trend following tool that combines multiple moving average calculations into a single line on the platform.
Instead of relying on one moving average, the indicator calculates the average value of eighteen different moving averages to provide a smoother view of the overall trend.
The calculation includes several popular moving average types such as the simple moving average, exponential moving average, smoothed moving average, linear weighted moving average, triangular moving average, and the Hull moving average.
By combining these methods, the indicator filters short term noise and highlights broader market direction.
This makes it useful for traders who want to identify the dominant trend and trade in the same direction as market momentum.
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Key Features
- Combines the average value of eighteen moving averages.
- Includes SMA, EMA, SMMA, LWMA, TMA, and Hull moving average calculations.
- Helps identify the dominant market trend.
- Useful for both trade entries and exits.
- Works with crossover and trend following strategies.
- Simple interpretation using price position relative to the indicator.
- Adjustable period and applied price parameters.
Indicator Chart
The Average of 18 Moving Averages Indicator appears in the main price window as a smooth trend line.
When price moves above the line it signals bullish conditions, while price trading below the line reflects bearish momentum.
Guide to Trade with the Average of 18 Moving Averages Indicator
Buy Rules
- Wait for the candle to close above the Average of 18 Moving Averages line.
- Confirm that the move occurs after price approaches the indicator from below.
- Open a buy trade once bullish momentum continues above the line.
- Avoid entering if price is approaching strong resistance.
Sell Rules
- Wait for the candle to close below the Average of 18 Moving Averages line.
- Confirm that price previously traded above the indicator.
- Open a sell trade once bearish momentum continues below the line.
- Avoid selling directly into strong support levels.
Stop Loss
- Set the stop loss a few pips below the indicator line for buy trades.
- Set the stop loss a few pips above the indicator line for sell trades.
- Use the indicator as a dynamic support/resistance level to trail your stop if the trend continues.
Take Profit
- Close the buy trade if price moves back below the indicator line.
- Close the sell trade if price moves back above the indicator line.
- Alternatively, exit the trade at a fixed profit target.
- Secure profits early if price approaches major support or resistance.
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FAQ
Why does the indicator use 18 moving averages?
The indicator averages multiple moving average calculations to create a smoother trend line that reduces short term market noise.
What moving average types are included in the calculation?
The calculation includes simple, exponential, smoothed, linear weighted, triangular, and Hull moving averages.
Can this indicator be used as a trend filter?
Yes. Many traders use it to determine the main market direction before entering trades with other strategies.
Which parameter can be adjusted?
The main adjustable settings include the moving average period and the applied price used for the calculation.
Summary
The Average of 18 Moving Averages Indicator provides a broader view of market direction by combining multiple moving average calculations into a single trend line.
Traders can use the indicator to identify bullish and bearish phases based on the position of price relative to the line.
It can also serve as a trend filter when used alongside other technical tools.
With a simple interpretation method and customizable settings, the indicator offers a practical solution for traders who want a smoother moving average based trend analysis tool.
