The Taotra Trend MT4 forex indicator consists of a fast MA (LimeGreen), middle MA (Gold) and slow MA (Violet) technical indicator.
You can choose from the following moving average types: simple MA, linear weighted MA, smoothed MA and exponential MA.
Understanding how to trade with this indicator is pretty easy:
A buy signal occurs when the fast MA is aligned above the middle MA and slow MA + the middle MA is aligned above the slow MA.
The opposite applies to sell signals.
In this case, the fast MA is aligned below the middle MA and slow MA + the middle MA is aligned below the slow MA.
The Taotra Trend Metatrader 4 indicator is a typical forex crossover system indicator but uses 3 different moving averages instead of 2.
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Download the “taotra.ex4” MT4 indicator
Indicator Chart (EUR/USD M5)
The EUR/USD 5-Minute chart below displays the Taotra Trend Metatrader 4 indicator in action.
Basic Trading Signals
Signals from the Taotra Trend MT4 indicator are easy to interpret and go as follows:
Buy Signal: Buy the currency pair when the fast moving average is aligned above the middle moving average and slow moving average + the middle moving average is aligned above the slow moving average.
A protective stop-loss should be placed below the previous support level.
Sell Signal: Sell the currency pair when the fast moving average is aligned below the middle moving average and slow moving average + the middle moving average is aligned below the slow moving average.
A protective stop-loss should be placed above the previous resistance level.
Trade Exit: Use your own method of trade exit.
TAOTRA Trend + Parabolic SAR MT4 Forex Scalping Strategy
This strategy combines the TAOTRA Trend MT4 Indicator with the Parabolic SAR MT4 Indicator to scalp short-term moves.
TAOTRA Trend provides the overall direction: when its moving averages slope upward, we consider a bullish trend, and when they slope downward, a bearish trend.
The Parabolic SAR then gives precise timing for entries when price momentum shifts.
This setup works best on fast timeframes such as 1-minute (M1), 5-minute (M5), or 15-minute (M15) charts and is suitable for major, liquid Forex pairs like EURUSD, GBPUSD, USDJPY, or AUDUSD.
Buy Entry Rules (Long Scalps)
- TAOTRA Trend shows an upward trend (its MAs are sloping up).
- Parabolic SAR dots appear below the candlesticks (PSAR gives a bullish signal).
- Enter a buy trade at the close of the candle when PSAR flips below the price.
- Place a stop loss a few pips below the most recent PSAR dot or recent swing low.
- Take profit: target 8–15 pips or set a small fixed‑pip target depending on pair volatility.
Sell Entry Rules (Short Scalps)
- TAOTRA Trend shows a downward trend (its MAs are sloping down).
- Parabolic SAR dots appear above the candlesticks (PSAR gives a bearish signal).
- Enter a sell trade at the close of the candle when PSAR flips above the price.
- Place a stop loss a few pips above the most recent PSAR dot or recent swing high.
- Take profit: target 8–15 pips or use fixed‑pip profit depending on pair volatility.
Advantages
- Fast entries and exits, which are suitable for scalping with minimal time commitment.
- Trend‑filter from TAOTRA reduces trades against the main direction, lowering false signals.
- Parabolic SAR provides clear trigger timing, simplifying decision-making in fast markets.
- Fixed take‑profit target helps lock in small gains consistently when volatility is moderate.
Drawbacks
- Requires quick execution and discipline; slippage and spread costs may eat into profits on small targets.
- Not suitable during very choppy market periods because the trend filter may not be reliable if price whipsaws around the MAs.
Example Case Studies
Case Study 1 – EURUSD (5‑minute chart)
During a London session, TAOTRA Trend showed a clear uptrend.
PSAR dots flipped below the price at 1.10320.
A buy was entered at 1.10325, stop loss placed at 1.10280 (5 pips below PSAR), take profit set at 1.10440 (target 12–13 pips).
The market moved in favor quickly, and the trade closed for +13 pips within 20 minutes.
Case Study 2 – USDJPY (M5 chart)
On a volatile Asian session, the TAOTRA Trend sloped down.
PSAR flipped above price at 145.820.
A sell order was opened at 145.815, stop loss at 145.870 (5 pips above PSAR dot), take profit at 145.700 (target 11–12 pips).
The move was completed within 15 minutes, yielding about +11 pips.
Strategy Tips
- Prefer major currency pairs with tight spreads for scalping small pip targets.
- Trade during high-volatility sessions, such as London or New York open, for faster take profit.
- Avoid trading in quiet or consolidating periods. Skip trades if the TAOTRA slope is flat.
- Use small position size and proper risk management, risking only 0.5–1% per trade.
- Consider a volatility filter, for example, ATR, to avoid weak moves that may not reach TP.
- Monitor spread. Avoid trades when the spread is wide relative to the pip target.
- Use a fast broker to reduce slippage, which is important for short-term targets.
Download Now
Download the “taotra.ex4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customisation options: Variable (starting period, method, average method, price, period step, slow MA, middle MA, fast MA) 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
