The Ultimate MA Metatrader 4 forex indicator is a moving average that is built on the Ultimate Oscillator.
The indicator successfully calculates the weighted average of three moving averages, i.e. Simple, Exponential or Linear Weighted.
The three moving averages are highly adjustable; as such, the Ultimate MA indicator can spot trends better than the single moving average.
Interestingly, the Ultimate MA indicator can also be used as a gauge to filter entry/exit points in the market.
Instead of deploying two/three SMAs or EMAs that can invariably result in a chart window cluster, the Ultimate MA indicator offers a good alternative.
Free Download
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Indicator Chart (EUR/USD H1)
The EUR/USD H1 chart below displays the Ultimate MA Metatrader 4 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when price opens and closes above the medium violet red line of the Ultimate MA Metatrader 4 indicator.
Sell Signal: Go short when the price opens and closes below the medium violet red line of the Ultimate MA Metatrader 4 forex indicator.
Exit buy trade: Close all buy orders while a bullish trend is ongoing, price closes below the medium violet red line of the Ultimate MA indicator.
Exit sell trade: Close all sell orders while a bearish trend is running, price closes above the medium violet red line of the Ultimate MA indicator.
Tips: The Ultimate MA indicator is a price smoothing indicator that can also be an amazing substitute for a simple moving average or an exponential moving average.
Ultimate Moving Average + Sibbet Demand Index Indicator Forex Day Trading Strategy
This strategy combines the Ultimate MA MT4 Indicator with the Sibbet Demand Index Divergence MT4 Indicator.
The Ultimate MA shows the trend direction: price above the moving average indicates a bullish trend, while price below indicates a bearish trend.
The Sibbet Demand Index plots a histogram: green bars above zero signal buying pressure, and red bars below zero signal selling pressure.
Combining these indicators allows traders to enter trades in the direction of the trend with confirmation from demand/supply momentum.
This setup works best on day trading timeframes such as M15, M30, and H1, and is suitable for traders looking for clear trend-following entries with momentum confirmation.
Buy Entry Rules
- Price must be above the Ultimate MA, indicating a bullish trend.
- The Sibbet Demand Index histogram must be green and above zero.
- Enter a long trade at the close of the candle when the green histogram appears while the price remains above the MA.
- Place a stop loss a few pips below the most recent swing low.
- Exit when the histogram turns red or the price closes below the MA.
Sell Entry Rules
- Price must be below the Ultimate MA, indicating a bearish trend.
- The Sibbet Demand Index histogram must be red and below zero.
- Enter a short trade at the close of the candle when the red histogram appears while the price remains below the MA.
- Place a stop loss a few pips above the most recent swing high.
- Exit when the histogram turns green or the price closes above the MA.
Advantages
- Clear trend filter using the Ultimate MA.
- Momentum confirmation from the Sibbet Demand Index reduces false entries.
- Suitable for day trading on multiple timeframes.
- Well-defined stop loss and exit rules improve risk management.
- Works across various currency pairs.
Drawbacks
- In ranging markets, the MA may give misleading trend signals.
- The histogram may lag during sharp price movements.
- Exits based solely on histogram reversal may give back part of the profit in slow trends.
- Requires monitoring to avoid trades during low-volume or consolidating sessions.
Example Case Study 1
On EUR/JPY H1, the price remained above the Ultimate MA, showing an uptrend.
The Sibbet Demand Index histogram turned green, signaling a buy.
A long trade was entered at candle close with a stop loss 10 pips below the swing low.
The histogram remained green, and the trade was closed when the price closed below the MA, netting a profit of 25 pips.
Example Case Study 2
On GBP/USD M30, the price stayed below the Ultimate MA, signaling a downtrend.
The histogram turned red, confirming a sell signal.
A short position was taken with a stop loss 8 pips above the recent swing high.
The price moved lower, and the trade was exited when the histogram turned green, resulting in an 18-pip gain.
Strategy Tips
- Focus on active sessions such as London and New York for stronger trend and momentum signals.
- Avoid taking trades when the price is too close to the MA and the histogram is weak or fluctuating.
- Adjust stop losses according to the volatility of the currency pair.
- Wait for confirmation of both trend and histogram before entering a trade to reduce false signals.
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Download the “ultimate-ma.ex4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern indicator
Customisation options: Variable (MA_Method, fastperiod, middleperiod, slowperiod, fastK, middleK, slowK), width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: trend
