The LSMA indicator is a customized moving average designed for Metatrader 5 that reacts faster to sudden trend changes.
It leads to decreased lag and better trend prediction.
How to spot the trend with the LSMA indicator?
- The market is considered bullish when the candles are positioned above the LSMA indicator.
- The market is considered bearish when the candles are positioned below the LSMA indicator.
The following indicator inputs and parameters can be modified: smoothing depth, price constant, horizontal shift, vertical shift.
The LSMA indicator works for any trading instrument supported by the MT5 charting platform.
Make yourself familiar with this technical indicator and test it first on a demo account before using it on a live trading account.
It supports all time frames and Forex pairs.
Free Download
Chart Example
The following chart shows how the LSMA indicator looks when applied to the MT5 chart.
How To Buy And Sell Forex Pairs With The LSMA Indicator?
Find a simple trading example below:
Buy Signal
- A buy trend occurs when the candle closes above the purple colored LSMA line from below.
- Execute a buy market order and set a protective stop below the previous swing low level.
- Exit the buy trade for a potential reward to risk ratio of 1.5.
- Alternatively: close the buy position and reverse the trade when the candle closes back below the purple line.
Sell Signal
- A sell trend occurs when the candle closes below the purple colored LSMA line from above.
- Execute a sell market order and set a protective stop above the previous swing high level.
- Exit the sell trade for a potential reward to risk ratio of 1.5.
- Alternatively: close the sell position and reverse the trade when the candle closes back above the purple line.
