The Differential Average Forex indicator for Metatrader 5 follows the overall trend and creates valuable buy & sell crossover trading signals.
The indicator gets displayed in a bottom chart window as two colored lines that cross each other when the trend reverses in the opposite direction.
The indicator works for scalpers, day traders and swing traders alike.
Understanding the Differential Average indicator:
- A bullish market trend occurs when the blue line is positioned above the red line.
- A bearish market trend occurs when the red line is positioned above the blue line.
The following indicator inputs and parameters can be fully adjusted: calculate period, numbers of bars to display.
Tip for scalpers and day traders: Utilize this indicator during the most volatile trading hours for best trading results.
Make yourself familiar with this technical indicator and test it first on a demo account before running it in a live trading environment.
It supports all time frames and Forex pairs.
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The following chart shows how the Differential Average indicator looks like when applied to the MT5 chart.
How To Buy And Sell Forex Pairs With The Differential Average Indicator?
Find a simple trading example below:
- A buy signal is formed as soon as the blue colored differential average line has crossed above the red colored line (bullish crossover).
- Initiate a buy order and place a stop loss below the previous swing low area.
- Close the buy trade for a fixed profit target or hold the trade until a sell signal shows up in the chart.
- A sell signal is formed as soon as the red colored differential average line has crossed above the blue colored line (bearish crossover).
- Initiate a sell order and place a stop loss above the previous swing high area.
- Close the sell trade for a fixed profit target or hold the trade until a buy signal shows up in the chart.
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Frequently Asked Questions
How Do I Install This Custom Indicator On Metatrader 5?
- Open the MT5 trading platform
- Click on the File menu button located at the top left part of the platform
- Click on Open Data Folder > MQL5 folder > Indicators
- Copy the Differential Average by Sultonov.mq5 indicator file in the Indicators folder
- Close and restart the trading platform
- You will find the indicator here (Navigator window > Indicators)
- Drag the indicator to the chart to get started with it!
How Do I Edit This Indicator?
- Click in the open chart with your right mouse button
- In the dropdown menu, click on Indicator List
- Select the indicator and click on properties
- Now you can edit the inputs, colors, levels, scale and visualization
- Finally click the OK button to save the new configuration