The Moving Average 3 Colors MTF indicator for mt4 (Metatrader 4) can be categorized as a complete Forex system that’s built up of 3 colored moving averages.
The indicator is MTF-enabled by default. Feel free to experiment with different time frames.
Buy & Sell Trade Example
- Go long when the candlestick crosses all moving averages bottom-up (strongly bullish).
- Go short when the candlestick crosses all moving averages top-down (strongly bearish).
The indicator can be used as a standalone trading tool for both trade entry and exit.
It can also be used as an additional trend filter that works together with an existing strategy of your system of preference.
The indicator works equally well on all currency pairs (majors, minors and exotic) and shows promising results if used correctly.
Free Download
Download the “ma 3×3 colors mtf.mq4” indicator for MT4
Indicator Chart (EUR/USD M5)
The example chart below displays the Moving Average 3 Colors MTF mt4 indicator in action on the trading chart.
Trading Tips:
Feel free to use your own favorite trade entry, stop loss and take profit method to trade with the Moving Average 3 Colors MTF Forex indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Trend
Does the indicator repaint? No.
Moving Average 3 Colors MTF & Waddah Attar Forex Scalping Strategy
This MT4 scalping strategy combines the Moving Average 3 Colors MTF Indicator and the Waddah Attar Trend Scalper Indicator to capture short-term price movements.
The Moving Average 3 Colors MTF Indicator identifies trend direction: bullish when all moving averages slope upwards, bearish when all slope downwards.
The Waddah Attar indicator confirms buy signals with a green histogram and sell signals with a red histogram.
This strategy is designed for GBP/USD, USD/CHF, GBP/JPY, and EUR/USD on 5-minute and 15-minute charts, aiming for 5–10 pips per trade.
Buy Entry Rules
- Confirm all moving averages are sloping upwards for a bullish trend.
- Wait for the Waddah Attar Trend Scalper histogram to turn green.
- Enter a buy trade at the opening of the next candle after the green histogram appears.
- Place a stop loss 3–5 pips below the entry point.
- Set take profit at 5–10 pips.
- Close the trade immediately if the histogram changes from green to red.
Sell Entry Rules
- Confirm all moving averages are sloping downwards for a bearish trend.
- Wait for the Waddah Attar Trend Scalper histogram to turn red.
- Enter a sell trade at the opening of the next candle after the red histogram appears.
- Place a stop loss 3–5 pips above the entry point.
- Set take profit at 5–10 pips.
- Close the trade immediately if the histogram changes from red to green.
Advantages
- Combines trend confirmation with signal confirmation for higher probability trades.
- Ultra-fast scalping is suitable for 5-minute and 15-minute charts.
- Clear visual entries and exits using a histogram and trend slope.
- Small pip targets reduce exposure while allowing frequent profit-taking.
Drawbacks
- The strategy may generate false signals during ranging or sideways markets.
- Frequent trades can lead to overtrading if risk management is not disciplined.
- Performance may vary between different currency pairs, requiring testing for each pair.
- Small pip targets mean a single loss can offset multiple winning trades if not careful.
Example Case Studies
Case Study 1: GBP/JPY 5-Minute Chart
All moving averages were sloping upwards, indicating a bullish trend.
The Waddah Attar histogram turned green.
A buy trade was entered at the next candle, with a stop loss 4 pips below entry and take profit set at 8 pips.
The trade reached the target, and the position was closed when the histogram turned red.
Case Study 2: EUR/USD 15-Minute Chart
All moving averages were sloping downwards, indicating a bearish trend.
The Waddah Attar histogram turned red.
A sell trade was entered at the next candle, with a stop loss 5 pips above entry and take profit set at 10 pips.
The trade reached the target, and the position was closed when the histogram turned green.
Strategy Tips
- Combine the strategy with a higher timeframe trend analysis to filter low-probability trades.
- Keep a trading journal to track which currency pairs perform best with this strategy.
- Adjust your stop loss slightly wider during highly volatile periods to avoid early exits.
- Consider scaling out of trades partially when near take profit to lock in gains.
- Always check for upcoming economic news events to reduce the risk of unexpected volatility.
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Download the “ma 3×3 colors mtf.mq4” indicator for Metatrader 4
