The Squize EMA Signal Metatrader 4 forex indicator is a combination of two exponential moving averages wrapped around each other.
The blue line is a 5-period exponential moving average by default, while the red line is a 20-period exponential moving average.
The crossing of these lines triggers a buy/sell trading signal depending on its positioning.
The 5-period EMA and 20-period EMA are significant moving averages, as a result of their peculiar design that allows them to respond quickly to price changes.
This invariably suggests that the Squize EMA Signal indicator is very responsive in gauging the overall direction of future price.
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Indicator Chart (GBP/USD H1)
The GBP/USD H1 chart below displays the Squize MA Indicator Metatrader 4 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the red line of the Squize EMA Signal indicator crosses the blue line in a bottom-up manner.
Sell Signal: Go short when the red line of the Squize EMA Signal indicator crosses the blue line in a downward fashion.
Exit buy trade: Close all buy orders while a bullish trend is running, the Squize EMA Signal indicator intersects.
Exit sell trade: Close all sell orders while a bearish trend is ongoing, the Squize EMA Signal indicator crosses.
Tips: There are multiple ways to use this MT4 indicator. For example, as part of a forex trading strategy or as a standalone trading tool.
During buy/sell trading signals, the wider the distance between the moving average lines, the stronger the trend in focus.
Squize EMA Signal + RSI & Bollinger Bands Forex Scalping Strategy
This scalping strategy combines the Squize EMA Signal Metatrader 4 forex indicator with the RSI with Bollinger Bands Trend Reversal Indicator for MT4.
The idea is to catch quick price moves by using the cross of the EMA lines for trend direction and the RSI-Bollinger Bands arrow signals for confirmation.
This setup works best on lower timeframes (M5 or M15) and is suited for traders who prefer fast entries and short-term trades.
Buy Entry Rules
- Wait for the red line of the Squize EMA Signal indicator to cross the blue line from bottom up.
- Confirm that the RSI with the Bollinger Bands indicator shows a green arrow (buy signal) at the same or next candle.
- Enter a long position immediately after the confirmation.
- Set stop loss a few pips below the recent swing low or a recent swing low formed just before the crossover.
- Take profit quickly. Ideal targets are 5–15 pips, or you can exit when the first sign of reversal appears (for example, a red arrow from the RSI-BB indicator or the Squize EMA red line turning downward).
Sell Entry Rules
- Wait for the red line of the Squize EMA Signal indicator to cross the blue line from top downward.
- Confirm that the RSI with the Bollinger Bands indicator shows a red arrow (sell signal) at the same or next candle.
- Enter a short position immediately after the confirmation.
- Set the stop loss a few pips above the recent swing high or the high just before the crossover.
- Take profit quickly. Target 5–15 pips, or exit when the first sign of reversal appears (a green arrow from RSI-BB or Squize EMA red line turning upward).
Advantages
- Fast entries and exits are suitable for quick profits during high volatility periods.
- Trading signals from two independent indicators reduce confusion.
- Lower exposure to overnight risk because trades are short-term.
- Works across multiple currency pairs when volatility is high (e.g. EURUSD, GBPUSD).
Drawbacks
- Frequent trades increase spread and commission costs, which can reduce net profit.
- Whipsaw or fake signals may occur during low volatility or congested price action.
- Requires high concentration and quick execution, not ideal for those who cannot monitor charts carefully.
Example Case Study 1
On EURUSD M5, during a London session spike, the Squize EMA red line crossed above the blue line.
Immediately afterwards, the RSI-BB indicator displayed a green arrow.
A long position was opened.
Stop loss was placed 4 pips below the swing low.
Price surged 12 pips within 7 minutes.
Because the setup was strong and volatility was high, the 12-pip target was reached quickly, and the trade was closed for a small but fast profit.
Example Case Study 2
On GBPUSD M15, after a minor retracement, the Squize EMA red line crossed downward through the blue line.
The next candle triggered a red arrow from the RSI-BB indicator.
A short trade was initiated with a stop loss 6 pips above the recent swing high.
The drop was sharp, and 18 pips were captured within 15 minutes before the RSI-BB signaled a potential reversal.
The trade was closed, netting a tidy scalp.
Strategy Tips
- Use this strategy only during active sessions (London, New York) when volatility is reasonable.
- Avoid trading when the market is quiet or near major consolidation zones, as signals tend to be unreliable then.
- Ensure the spread is low because a high spread can reduce small scalp profits quickly.
- Stay disciplined and only trade when both indicators agree (EMA cross and RSI-BB arrow). Do not chase trades.
- Limit the number of trades per day to avoid overtrading. Focus on quality over quantity.
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Download the “squize-ma-indicator.ex4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern indicator
Customization options: Variable (MaDifrential, Ma1Type, Ma1Price, Ma1Period, Ma2Type, Ma2Price, Ma2Period), width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: trend
