About the Moving Average Strength Indicator
The Moving Average Strength Indicator for MT4 is a professional technical utility that combines the logic of a Moving Average, MACD, and Stochastic into a single histogram.
This tool functions as a versatile window into market energy by showing when the bulls or bears are in charge.
By providing a clean interface in a separate window, it allows you to focus on high-probability entries backed by mathematical confirmation.
It is designed for flexibility, fitting into various strategies from fast scalping to long-term trend following.
Using this indicator ensures you stay aligned with the dominant market force while maintaining a professional trading environment on the MT4 platform.
Free Download
Download the “moving-average-strength.mq4” MT4 indicator
Key Features
- Features a multifunctional design that includes Moving Average, MACD, and Stochastic algorithms.
- Displays momentum shifts through a simple color-coded histogram in a separate window.
- Allows for easy toggling between different technical studies directly from the input tab.
- Offers fully adjustable parameters for each underlying indicator to suit any trading style.
Indicator Chart
The chart displays the Moving Average Strength Indicator in a separate window below the price bars.
It shows a series of vertical histogram bars that change between green and red to indicate the prevailing trend direction.
When the bars are green, it signals that the selected algorithm has detected bullish strength.
When the bars turn red, it confirms that bearish momentum is increasing.
Guide to Trade with Moving Average Strength Indicator
Buy Rules
- Select your preferred technical study like the Stochastic or MACD in the indicator input tab.
- Ensure the overall trend is bullish by checking if price is above a long-term moving average indicator.
- Wait for the Moving Average Strength Indicator bars to change color from red to green.
- Initiate a long position at the start of the next candle once the green bar is confirmed.
Sell Rules
- Access the input menu and activate the desired technical study for your current strategy.
- Verify that the primary market trend is bearish through price action or trend-following tools.
- Monitor the histogram until the bars transition from green to a solid red color.
- Execute a short trade immediately after the first red bar appears on a closed candle.
Stop Loss
- For buy trades, place the stop loss a few pips below the most recent swing low.
- For sell trades, position the stop loss slightly above the nearest local swing high.
Take Profit
- Set a take profit target at a major psychological level or a historical resistance zone.
- Consider exiting the trade when the histogram bars change to the opposite color.
- Aim for a reward to risk ratio of at least 1:2 to ensure long-term profitability.
Moving Average Strength and Best Forex Scalping MT4 Strategy
This MT4 scalping strategy combines the Moving Average Strength Indicator with the Best Forex Scalping Indicator to create a trend-aligned, momentum-based scalping approach.
The Moving Average Strength indicator shows the strength of bullish and bearish trends through colored histogram bars.
The Best Forex Scalping Indicator provides precise entry signals with colored arrows to indicate potential scalping opportunities in alignment with the trend.
This strategy is best applied on M1 and M5 charts, focusing on major currency pairs during high liquidity sessions.
By combining trend strength with confirmation arrows, traders can capture quick price movements with higher probability setups.
Buy Entry Rules
- The Moving Average Strength indicator displays green histogram bars indicating bullish momentum.
- The Best Forex Scalping Indicator prints a blue arrow on the chart.
- Enter a buy trade at the close of the candle where the blue arrow appears.
- Place the stop loss below the most recent swing low.
- Exit the trade when a red arrow appears or the histogram turns red.
Sell Entry Rules
- The Moving Average Strength indicator displays red histogram bars indicating bearish momentum.
- The Best Forex Scalping Indicator prints a red arrow on the chart.
- Enter a sell trade at the close of the candle where the red arrow appears.
- Place the stop loss above the most recent swing high.
- Exit the trade when a blue arrow appears or the histogram turns green.
Advantages
- Combines trend strength and precise signal arrows for high probability entries.
- Visual and easy-to-read signals for fast scalping decisions.
- Reduces countertrend trades by aligning entries with trend momentum.
- Adaptable to multiple timeframes and currency pairs.
- Helps traders maintain discipline by clearly defining entries and exits.
Drawbacks
- False arrows may occur in choppy or low volatility conditions.
- Scalping requires tight spread conditions and fast execution.
- Short-term pullbacks may trigger early exits.
Case Study 1
On NZDUSD M1 during the London session, the Moving Average Strength indicator displayed green histogram bars indicating strong bullish momentum.
The Best Forex Scalping Indicator printed a blue arrow, confirming a buy entry.
A buy trade was opened at the close of the candle with a stop loss below the recent swing low.
Price moved upward consistently and the trade was exited when a red arrow appeared, capturing 13 pips in a few minutes.
Case Study 2
On USDCAD M5 during the New York session, the Moving Average Strength histogram turned red signaling bearish momentum.
Shortly after, the Best Forex Scalping Indicator printed a red arrow confirming a sell signal.
A sell trade was entered at candle close with a stop loss above the recent swing high.
Price moved lower steadily and the trade was closed when a blue arrow appeared, making 27 pips.
Strategy Tips
- Trade only when the histogram confirms a strong trend.
- Wait for the scalping arrow to appear before entering to improve accuracy.
- Focus on major pairs with high liquidity for faster execution.
- Avoid trading during low volatility periods or choppy market conditions.
- Use tight stops appropriate for the small timeframes.
- Combine multiple currency pairs to find the most reliable setups.
Download Now
Download the “moving-average-strength.mq4” Metatrader 4 indicator
FAQ
How do I switch between the Moving Average, MACD, and Stochastic modes?
To change the active algorithm, right-click on your chart and navigate to the indicator list.
Open the settings for the Moving Average Strength Indicator and locate the primary input parameter for the technical study.
You can select your chosen method from the dropdown menu, and the histogram will automatically update to reflect the new mathematical data based on that specific indicator.
Can I use the Moving Average Strength Indicator for scalping during volatile sessions?
Yes, this tool is excellent for scalping on the M1 and M5 timeframes, especially when the MACD or Stochastic modes are active.
These settings are highly responsive to quick price shifts during the London and New York opens.
Why is it recommended to use this tool with a longer period moving average?
Using a long-term filter like a 200-period moving average helps you avoid counter-trend signals.
The Moving Average Strength Indicator is very sensitive to momentum, which means it can change colors during minor pullbacks.
By only taking green bars in an uptrend and red bars in a downtrend, you ensure that you are trading with the path of least resistance.
Summary
The Moving Average Strength Indicator is a utility that brings the power of three classic indicators into a streamlined visual format.
By allowing traders to customize their momentum source, it offers a level of flexibility that is rare in standard MT4 tools.
To maximize your performance, experiment with each of the three modes to see which aligns best with your specific trading style.
Whether you prefer the smoothing of a moving average or the sensitivity of a stochastic, this tool provides a robust framework for trade execution.
