FATL 4 MA’s Forex Indicator (MT4)

FATL 4 MAs + Hourly Pivot Points Intraday Strategy (MT4)

Introduction

This strategy uses the FATL 4 MAs Indicator to generate trend-based entries and the Hourly Pivot Points Indicator to provide support/resistance and structure.

The simple rule from the FATL 4 MAs is: buy when the price closes above the IndianRed MA line, sell when it closes below.

The pivot levels help define potential areas to take profits or avoid entries too close to strong resistance/support.

It works best on 5-minute and 15-minute charts, during active market hours, for traders who prefer well-defined entries and exits within the day.

Setup

• Attach the FATL 4 MAs indicator to your MT4 chart.
• Attach the Hourly Pivot Points indicator to the same chart.
• Use major currency pairs (EURUSD, GBPUSD, USDJPY, etc.).
• Use timeframes like M5 or M15.
• Make sure the pivot levels (especially hourly pivot, S1/S2, R1/R2) are visible.

Buy Entry Rules

• The candlestick must close above the IndianRed colored MA line in the FATL 4 MAs indicator.
• Confirm that the overall trend is upward (MAs sloping upward or aligned bullishly).
• Verify that the close is not too close to a strong resistance pivot (e.g., just under R1 or R2).
• Enter the market buy on that candle’s close.
• Stop loss: just below the IndianRed MA line or a recent swing low.
• Take profit: target a pivot level above (e.g., next pivot resistance such as R1 or R2).
• Optionally, partial exit at first pivot, trail remainder.
• If price closes back below the IndianRed MA before reaching the target, exit early to protect capital.

Sell Entry Rules

• The candlestick closes below the IndianRed colored MA line.
• Confirm trend is downward (MAs sloping downward or aligned bearishly).
• Avoid entries too close to strong support pivot (e.g., just above S1 or S2).
• Enter the market sell on the candle close.
• Stop loss: just above the IndianRed MA line or recent swing high.
• Take profit: target the next lower pivot support (S1 or S2). Use partial target or trailing.
• If the price closes back above the IndianRed MA before reaching the profit zone, exit early.

Advantages

• Very simple and clear entry rule (close above/below one line).
• Pivot levels give structure to take profits or avoid poor price zones.
• Works well during trending periods.
• Intraday style — you don’t hold overnight.
• Can be used across several currency pairs.

Drawbacks

• In range or choppy markets, many false signals will appear.
• Entry may occur too early or too late relative to the pivot zones.
• Pivot levels might act as a magnet and slow moves.
• Spread and slippage may erode gains, especially on smaller moves.
• Requires managing exits actively.

Example Case 1 — EURUSD, 5-Minute, Buy

Suppose the price of EURUSD is above most of the MAs and trending upward.

A candle closes above the Indian Red MA line. The nearest pivot resistance is R1 above.

You enter a buy on that close, set SL just below the line, and target R1. Price moves toward R1, and you take profit.

If price reverses and closes below the IndianRed MA line before reaching R1, you exit early.

Example Case 2 — GBPUSD, 15-Minute, Sell

In a downward-trending environment, a candle closes below the Indian Red MA line.

You enter a sell trade. The pivot support S1 is below; that becomes your target.

SL is above the MA line or recent swing high. Price drops toward S1, you take partial profits, and trail for more.

If price closes back above the MA line before S1, exit to avoid reversal losses.

Strategy Tips

• Trade during high-volume hours (London open, New York open).
• Avoid trading just before or during major news events.
• Use a modest risk size (0.5 % to 1 % of the account) because intraday trading can have many small losers.
• Use pivot levels as guides: if the entry is too close to pivot resistance (for buy) or pivot support (for sell), the trade may have less room.
• You may combine with additional filters (e.g., a momentum indicator) to filter weaker entries.