The Moving Average Combo Signals forex indicator draws buy and sell signal arrows on the MT4 chart.
The indicator is a blend of 3 moving averages (Fast MA, Medium MA, Slow MA) with different periods.
This creates an easy to trade moving average crossover trading system.
- A buy signal occurs when the indicator paints a green arrow on the chart
- A sell signal occurs when the indicator paints a red arrow on the chart
The default moving averages period settings (5, 20, 34) can be changed from the indicator’s inputs tab.
Feel free to experiment with its MA period settings.
Use it for scalping, day trading and swing trading purposes.
Free Download
Download the “3-ma-buy-sell.mq4” MT4 indicator
Indicator Chart (EUR/USD H1)
The EUR/USD Hourly chart below displays the 3 Simple Moving Average Buy/Sell Arrows Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the 3 Simple Moving Average Buy/Sell Arrows MT4 forex indicator are easy to interpret and go as follows:
Buy Signal: Open buy trade position when the forex indicator draws a green arrow on the Metatrader 4 chart.
Sell Signal: Open sell trade position when the forex indicator draws a red arrow on the Metatrader 4 chart.
Trade Exit: Close the open buy/sell trade when an opposite signal occurs, or use your own method of trade exit.
Moving Average Combo + Precision Trend Histogram MT4 Forex Strategy
This strategy combines the Moving Average Combo Signals MT4 Forex Indicator and the Precision Trend Buy Sell Histogram MT4 Forex Indicator to capture high-probability trades.
The Combo Signals indicator draws green arrows for buy signals and red arrows for sell signals.
The Precision Trend Histogram shows green bars for bullish trends and red bars for bearish trends.
By only taking trades when the signal arrow aligns with the trend histogram, traders reduce false entries.
This strategy works well on M5, M15, and H1 charts for intraday trading on major currency pairs.
Buy Entry Rules
- Wait for a green arrow from the Moving Average Combo Signals indicator.
- Confirm the Precision Trend Histogram shows green bars at or just before the arrow appears.
- Enter a buy trade at the next candle open after the signal and confirmation.
- Set stop loss a few pips below the recent swing low or nearby support.
- Take profit when histogram bars turn red, price reaches a swing high, or use a trailing stop to capture extended moves.
Sell Entry Rules
- Wait for a red arrow from the Moving Average Combo Signals indicator.
- Confirm the Precision Trend Histogram shows red bars at or just before the arrow appears.
- Enter a sell trade at the next candle open after the signal and confirmation.
- Set stop loss a few pips above the recent swing high or nearby resistance.
- Take profit when histogram bars turn green, price reaches a swing low, or use a trailing stop.
Advantages
- Combines signal arrows with trend confirmation to reduce false entries.
- Works on multiple timeframes: M5, M15, H1.
- Clear trading rules make it easy to follow and backtest.
- The trend histogram shows trend strength to improve entry confidence.
- Stop loss and take profit levels are well-defined for risk management.
Drawbacks
- Signals may lag price slightly, missing some initial pips.
- Sideways markets reduce histogram effectiveness, causing false signals.
- Frequent trades on M5 can increase spread and slippage costs.
- Requires discipline to wait for both signal and histogram confirmation.
- Price may behave unpredictably during major news events.
Case Study 1: EUR/USD on M5
On the 5-minute EUR/USD chart, a green arrow appeared at 1.1010 while the Precision Trend Histogram showed green bars.
A buy trade was entered at 1.1012 with a stop loss at 1.1004.
Price moved to 1.1030, reaching a swing high, giving a gain of 18 pips within 25 minutes.
Case Study 2: GBP/JPY on M15
On the 15-minute GBP/JPY chart, a red arrow appeared at 159.85 and the histogram confirmed a bearish trend with red bars.
A sell trade was entered at 159.83 with a stop loss at 160.00.
Price dropped to 159.50, hitting the next support level, for a profit of 33 pips over 45 minutes.
Case Study 3: AUD/USD on H1
On the 1-hour AUD/USD chart, a green arrow appeared at 0.6820 with histogram green bars confirming a bullish trend.
A buy trade was entered at 0.6822 with a stop loss at 0.6808.
Price rose to 0.6860 over 3 hours, yielding 38 pips before the histogram began to turn red, signaling a weakening trend.
This shows how the strategy can capture larger intraday moves on H1 charts.
Strategy Tips
- Trade during active sessions for higher volatility and better follow-through.
- Check higher timeframe trends to align trades with the overall market direction.
- Adjust position size according to volatility and timeframe.
- Consider a volatility filter to skip low-volume periods.
- Keep a trading journal for entries, exits, and pip results to improve performance.
- Use trailing stops to maximize profits on strong trends.
Download Now
Download the “3-ma-buy-sell.mq4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (FasterMA, MediumMA, SlowerMA, SoundAlert) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: Trend
