About the Kauf WMA Cross Forex Signal Indicator
The Kauf WMA Cross Forex Signal Indicator for Metatrader 4 is a trading tool that generates precise buy and sell signals based on the Kaufman method.
The indicator plots yellow and red arrows on the main MT4 chart to indicate trading opportunities.
Yellow arrows signal potential bullish entries, while red arrows indicate potential bearish moves.
This makes it easy for traders to react quickly to market changes without relying on multiple indicators.
It can be used as a standalone system for trade entries and exits or combined with other trend-following tools to filter signals.
Free Download
Download the “KaufWMAcross.mq4” indicator for MT4
Key Features
- Real-time yellow and red arrow signals on the main chart
- Works as a standalone system or trend confirmation tool
- Reduces guesswork for entry and exit timing
- Compatible with other indicators and trading strategies
Indicator Chart
The chart shows the Kauf WMA Cross Forex Signal Indicator with yellow and red arrows plotted above or below candlesticks.
Yellow arrows mark potential buy opportunities, while red arrows mark sell opportunities.
Traders can quickly identify high-probability trade setups and align them with the market trend.
Guide to Trade with Kauf WMA Cross Forex Signal Indicator
Buy Rules
- Enter a buy trade when a yellow arrow appears on the chart.
- Confirm that the arrow appears in the direction of the prevailing trend.
Sell Rules
- Enter a sell trade when a red arrow appears on the chart.
- Ensure the arrow is in line with the trend or momentum conditions.
Stop Loss
- For buy trades, place the stop loss just below the low of the arrow candle or the nearest swing low.
- For sell trades, place the stop loss just above the high of the arrow candle or the nearest swing high.
- Leave enough room to avoid being stopped out by minor retracements.
Take Profit
- Set the first target near the next support (for buys) or resistance (for sells).
- Consider trailing stops as the trade moves in your favor to capture larger trends.
Practical Tips
- Use higher timeframes to identify the dominant trend before taking lower timeframe signals.
- Combine with momentum or trend indicators for additional confirmation.
Kauf WMA Cross + XP Moving Average Scalping Strategy for MT4
This scalping strategy matches the Kauf WMA Cross entry arrows with the XP Moving Average trend line.
The Kauf indicator gives a yellow arrow for buy and a red arrow for sell.
The XP Moving Average shows trend direction with a green line in bullish conditions and a red line in bearish conditions.
Use this method on lower timeframes where quick moves matter. M1 and M5 are best for high action and many small trades.
M15 is also usable when you want slightly wider stops and fewer trades.
This approach suits traders who prefer short holds, fast decisions, and clear exit rules.
The system works because trend alignment reduces losing countertrend entries.
Buy Entry Rules
- Wait for a yellow Kauf arrow to appear on the chart.
- Confirm the XP Moving Average line is green or has just turned green.
- Enter a market buy on the close of the signal candle.
- Set stop loss below the recent swing low or below the low of the signal candle.
- On M1/M5 use 6 to 15 pips depending on pair volatility.
- Set take profit at 1.0 to 1.5 times your stop.
- Typical TP is 8 to 20 pips on majors on M1/M5.
- If price moves quickly in your favor, move the stop to break even after half the TP is reached and then trail to protect profits.
Sell Entry Rules
- Wait for a red Kauf arrow to appear on the chart.
- Confirm the XP Moving Average line is red or has just turned red.
- Enter a market sell on the close of the signal candle.
- Set stop loss above the recent swing high or above the high of the signal candle.
- On M1/M5 use 6 to 15 pips depending on pair volatility.
- Set take profit at 1.0 to 1.5 times your stop.
- Typical TP is 8 to 20 pips on majors on M1/M5.
- Trail the stop as the trade moves in your favor to lock gains while giving space for momentum.
Advantages
- Clear and fast rules make execution straightforward.
- The trend filter reduces false entries and keeps trades with momentum.
- Adaptable to many currency pairs and timeframes.
- Short holds cut exposure to overnight events and reduce risk from news shocks.
Drawbacks
- Lower timeframes create noise and occasional whipsaws.
- Small targets mean spread and execution cost matter a lot.
- Multiple losers in a row can occur during low liquidity or choppy conditions.
- The system demands discipline and consistent risk management to be profitable.
Example Case Study 1 — EUR/USD, M5
The XP Moving Average was green, and the market showed mild upward pressure.
A yellow Kauf arrow formed at 1.0850 on the close of a five-minute candle.
Entry was 1.0850. Stop loss placed at 1.0842, eight pips under entry.
Take profit set at 1.0862, twelve pips above entry.
Price moved up and hit the TP. The trade returned +12 pips.
The fixed fractional risk was kept small, and the trade fit the scalping plan.
Example Case Study 2 — GBP/USD, M1
The XP Moving Average turned red, and momentum increased.
A red Kauf arrow printed at 1.2470, and the trader sold at the close of the signal candle.
Stop loss was 1.2478, eight pips above entry. TP was 1.2458, twelve pips below entry.
Price moved sharply down, and the trader trailed the stop after six pips.
The trailing stop closed the trade at 1.2460 for ten pips.
The trailing exit captured most of the move while protecting against reversals.
Strategy Tips
- Always test on a demo and find the best stop size per pair and timeframe.
- Prefer major pairs during active sessions for tighter spreads.
- Avoid trading into major news events that expand spreads and increase false signals.
- Limit risk per trade to a small percentage of equity and use fixed fractional sizing.
- Keep a trade journal. Note why you entered and why you exited to refine the approach.
- Consider adding a simple volatility filter, such as ATR, to avoid very tight or very wide markets.
Download Now
Download the “KaufWMAcross.mq4” indicator for Metatrader 4
FAQ
How should I use the arrows in sideways markets?
During flat or choppy conditions, arrows can produce false signals. It’s best to trade only when the arrows align with the trend or momentum indicators.
Can I use this indicator on multiple timeframes?
Yes, it works across all timeframes. Higher timeframes are recommended for trend direction, while lower timeframes can be used for precise entries.
How can I manage risk effectively?
Adjust stop loss and take profit levels based on recent price swings or market volatility. Use position sizing and trailing stops to manage risk on each trade.
Summary
The Kauf WMA Cross Forex Signal Indicator for MT4 provides clear, real-time buy and sell signals with yellow and red arrows.
It allows traders to quickly identify entry and exit points without cluttering the chart with complex calculations.
This indicator is flexible for multiple trading styles, from scalping to swing trading.
When combined with trend or momentum confirmation tools, it improves trade accuracy and helps manage risk through dynamic stops and take profit adjustments.
