The Averages Trend Composite indicator for Metatrader 5 transforms price data into a signals oscillator that’s built on an exponential moving average.
The indicator shows up in a separate chart window as an oscillator that oscillates above and below 0.
It can be combined with any trading strategy for additional trend confirmation, or as a standalone buy/sell signal scalper tool.
How does it work?
- Green colored EMA bars indicate a bullish trend.
- Violet colored EMA bars indicate a bearish trend.
The indicator contains the following inputs and parameters: averages period, averages method, averages price, smoothing/slowing period.
Make yourself familiar with this technical indicator and test it first on a demo account for an extended period.
Remember to have realistic expectations, performance will vary depending on market conditions (trending markets, sideways markets, etc.).
Free Download
Averages composite trend.mq5 Indicator (MT5)
Chart Example
The following chart shows what the EMA Forex Trend Scalper indicator looks like when applied to the MT5 chart.
How To Buy And Sell Forex Pairs With The EMA Forex Trend Scalper Indicator?
Find a simple trading example below:
Buy Signal
- A buy signal occurs when the first green colored EMA histogram bar gets displayed above zero.
- Enter a long trade and place your stop loss order below the most recent support level.
- Exit the buy trade for a fixed profit target or wait for a sell signal.
Sell Signal
- A sell signal is given when the first violet colored EMA histogram bar gets displayed below zero.
- Enter a short trade and place your stop loss order above the most recent resistance level.
- Exit the sell trade for a fixed profit target or wait for a buy signal.
