About the Crosses of Averages Indicator
The Crosses of Averages Indicator for MT5 is a trend-following tool that provides precise buy and sell signals, ideal for scalpers and day traders.
It appears as colored green and red trend bars in a separate bottom chart window, making trend changes easy to identify.
Green bars indicate bullish momentum, while red bars indicate bearish momentum.
The indicator is especially effective on lower timeframes (M1 and M5) during volatile trading hours.
Traders can use it to capture quick price movements with minimal lag.
Inputs such as fast average period, slow average period, average method, and applied price can be customized to match your trading style.
This allows flexibility while maintaining precise signal timing for short-term trades.
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Crosses of averages.mq5 Indicator (MT5)
Key Features
- Displays green and red trend bars in a separate bottom chart window.
- Designed for scalping and day trading strategies.
- Works best on lower timeframes during volatile sessions.
- Customizable fast and slow average periods for flexibility.
- Choice of average method and applied price.
- Compatible with all Forex pairs and multiple timeframes.
Indicator Chart
The Crosses of Averages Indicator appears as green and red trend bars beneath the main price chart.
Traders can quickly see bullish and bearish momentum, allowing timely entries and exits for short-term trades.
Guide to Trade with Crosses of Averages Indicator
Buy Rules
- Wait for a green trend bar to appear on the indicator.
- Confirm upward momentum before opening a trade.
- Open a buy trade once the green bar is confirmed.
- Enter only if the market shows clear bullish movement on the chart.
Sell Rules
- Wait for a red trend bar to appear on the indicator.
- Confirm downward momentum before opening a trade.
- Open a sell trade once the red bar is confirmed.
- Enter only if the market shows clear bearish movement on the chart.
Stop Loss
- For buy trades, set the stop loss 3 pips below the previous swing low.
- For sell trades, set the stop loss 3 pips above the previous swing high.
- Use swing points as a guide for protecting trades effectively.
Take Profit
- Close buy trades when a red trend reversal bar appears.
- Close sell trades when a green trend reversal bar appears.
- Optionally scale out partial profits if a strong trend continues.
- Adjust exits for major support or resistance levels if necessary.
Crosses of Averages MT5 Scalping Strategy
This scalping strategy combines the Crosses of Averages Indicator with the No Lag MA Candle Indicator to build a fast trend-following system with precise entry timing.
The Crosses of Averages Indicator is based on moving average crossover logic, which is widely used to detect trend direction and potential reversals.
In this setup, a green trend bar signals a bullish trend and a red trend bar signals a bearish trend.
The No Lag MA Candle Indicator refines entries by reducing delay in price signals.
The first blue candle marks a buy entry opportunity, while the first brown candle marks a sell entry.
This allows traders to enter early while still following the main trend direction.
This combination focuses on entering trades at the start of momentum bursts while staying aligned with the broader trend direction shown by the averages.
Buy Entry Rules
- Wait for the Crosses of Averages Indicator to show a green trend bar, confirming bullish direction.
- Wait for the first blue candle from the No Lag MA Candle Indicator.
- Enter a buy trade at the close of the blue candle.
- Place a stop loss below the most recent swing low or below the last red candle zone.
- Close the trade when a brown candle appears or when the trend bar turns red.
Sell Entry Rules
- Wait for the Crosses of Averages Indicator to show a red trend bar, confirming bearish direction.
- Wait for the first brown candle from the No Lag MA Candle Indicator.
- Enter a sell trade at the close of the brown candle.
- Place a stop loss above the most recent swing high or above the last blue candle zone.
- Close the trade when a blue candle appears or when the trend bar turns green.
Case Study 1: AUDUSD M5 Buy Scalping Setup
On AUDUSD M5, price moved out of a tight consolidation and the Crosses of Averages Indicator shifted to a green trend bar, confirming a bullish structure.
Soon after, the No Lag MA Candle Indicator printed its first blue candle, signaling the start of upward momentum.
A buy trade was entered at the close of that candle.
The stop loss was placed below the recent swing low and just under the previous consolidation area to reduce risk from quick retracements.
Price pushed higher in short waves with minor pullbacks.
The buy trade was closed when a brown candle appeared, indicating that bullish momentum was fading.
Case Study 2: EURJPY M15 Sell Scalping Setup
On EURJPY M15, price rejected a resistance area and the Crosses of Averages Indicator turned red, confirming bearish conditions.
Shortly after, the No Lag MA Candle Indicator printed its first brown candle during a small pullback.
A sell trade was entered at the close of that candle.
The stop loss was placed above the most recent swing high and slightly above the resistance level to allow normal price movement.
Price moved downward steadily with brief retracements while remaining in line with the bearish trend.
The sell trade was closed when a blue candle appeared, signaling a potential shift in direction.
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Crosses of averages.mq5 Indicator (MT5)
FAQ
Is this indicator good for scalping?
Yes. The Crosses of Averages Indicator provides fast and reliable signals on lower timeframes, making it ideal for scalping and day trading.
Can I adjust the averages?
Yes. The fast and slow average periods, method, and applied price can all be customized to match your trading strategy.
Which timeframes work best?
The indicator performs best on M1 and M5 charts during high volatility sessions such as London and New York.
Does it provide alerts?
The indicator primarily displays visual trend bars, but it can be combined with MT5 alerts for added notifications.
Summary
The Crosses of Averages Indicator offers a simple yet effective way to spot bullish and bearish momentum for scalping and day trading.
Green and red trend bars provide precise entry signals, while the stop loss and take profit rules help manage risk efficiently.
Customizable inputs and clear visual signals make this indicator suitable for both beginners and experienced traders looking to trade short-term trends on Forex pairs.
