The Linear Weighted Moving Average (LWMA) indicator for Metatrader 5 places much more weight on recent price data.
The most commonly used periods for LWMA: 200-day, 50-day, 20-day, 8-day and 5-day.
How to interpret this indicator?
- A candlestick close above the LWMA is considered bullish.
- A candlestick close below the LWMA is considered bearish.
- The linear weighted moving average works better for scalpers and day traders.
The linear weighted moving average indicator works for any trading instrument that can be loaded in the Metatrader 5 platform.
The following indicator inputs and parameters can be modified: LWMA period (14), price.
Make yourself familiar with this technical indicator and test it first on a demo account.
It supports all time frames and Forex pairs.
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The following chart shows how the Linear Weighted Moving Average (LWMA) Forex indicator looks like when applied to the MT5 chart.
How To Buy And Sell Forex Pairs With The Linear Weighted Moving Average (LWMA) Indicator?
Find a simple trading example below:
- A buy signal occurs when the blue colored LWMA signal line is displayed on the price chart.
- Open a buy trade and place your stop loss 3 pips below the previous swing low.
- Close the buy trade for a fixed take profit target, or wait for a sell signal.
- A sell signal occurs when the orange colored LWMA signal line is displayed on the price chart.
- Open a sell trade and place your stop loss 3 pips above the previous swing high.
- Close the sell trade for a fixed take profit target, or wait for a buy signal.
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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 lwma.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