Var Moving Average for Metatrader 4 is a powerful trend indicator that delivers buy & sell signals for scalpers and day traders alike.
In essence, the Var Moving Average (mt4) will assist you in taking informed buy and sell trade decisions.
The indicator is very reliable, lightweight, and will not slow down your trading platform.
The signals appear on the main MT4 chart window in the form of green and red colored dots.
Buy & Sell Trade Example
- A buy signal is given when the first green dot is displayed on the chart.
- A sell signal is given when the first red dot is displayed on the chart.
- Close and reverse the open position when an opposite trading signal occurs on the chart.
The Var Moving Average indicator can be used for both trade entry and exit or as an additional trend filter.
The indicator works equally well on all currency pairs (majors, minors and exotic) and shows promising results if used correctly.
Free Download
Download the “var moving average.mq4” indicator for MT4
Indicator Chart (EUR/USD M5)
The example chart below displays the Var Moving Average mt4 indicator in action.
Trading Tips:
Feel free to use your own favorite trade entry, stop loss and take profit method when trading with the Var Moving Average Forex indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Trend
Does the indicator repaint? No.
VAR Moving Average + 2 Moving Average Arrow MT4 Scalping Strategy
This scalping strategy combines the VAR Moving Average Indicator for MT4 with the 2 Moving Average Arrow Forex Indicator for MT4.
It is designed for very short-term trades on M1 and M5 charts, helping traders capture quick price moves with minimal risk.
The VAR Moving Average shows the overall trend using green and red dots, while the 2 Moving Average Arrow provides precise entry points with blue (buy) and purple (sell) arrows.
How This Strategy Works
The VAR Moving Average filters out trades against the trend by displaying green dots for an uptrend and red dots for a downtrend.
The 2 Moving Average Arrow signals entries in the direction of the trend.
By combining these indicators, traders can focus on high-probability scalping setups that occur in alignment with the current trend, reducing false signals and enhancing trade timing.
Buy Entry Rules
- Ensure the VAR Moving Average dots are green, indicating a bullish trend.
- Wait for the 2 Moving Average Arrow to display a blue arrow (buy signal).
- Enter a buy trade at the close of the candle that generated the blue arrow.
- Place a stop loss below the most recent swing low, typically 5–10 pips on M1 and 8–12 pips on M5 charts.
- Take profit after 10–20 pips or when the VAR Moving Average dots turn red.
Sell Entry Rules
- Ensure the VAR Moving Average dots are red, indicating a bearish trend.
- Wait for the 2 Moving Average Arrow to display a purple arrow (sell signal).
- Enter a sell trade at the close of the candle that generated the purple arrow.
- Place a stop loss above the most recent swing high, typically 5–10 pips on M1 and 8–12 pips on M5 charts.
- Take profit after 10–20 pips or when the VAR Moving Average dots turn green.
Advantages
- Quick entries and exits are suitable for high-frequency scalping.
- Clear visual signals reduce confusion and allow fast decision-making.
- Works well on volatile pairs like GBP/USD, EUR/JPY, and AUD/USD.
- Trend filter (VAR Moving Average) reduces trades against market momentum.
Drawbacks
- Spreads and slippage can significantly affect profitability on M1 charts.
- High-frequency trading can be stressful and demands quick execution.
- Not suitable for long-term or swing trading; strictly for scalping.
Case Study 1 – EUR/USD M1 Chart
During the London session, the VAR Moving Average showed green dots on EUR/USD, confirming a bullish trend.
Shortly after, the 2 Moving Average Arrow displayed a blue arrow at 1.1012.
A buy trade was entered with a stop loss at 1.1005 and a target of 1.1022.
Price reached the target within 12 minutes, yielding +10 pips.
Case Study 2 – GBP/JPY M5 Chart
On GBP/JPY, the VAR Moving Average dots turned red, indicating a downtrend.
The 2 Moving Average Arrow displayed a purple arrow at 187.45.
A sell position was taken with a stop loss at 187.60 and a take profit at 187.25.
The price moved quickly in favor, reaching the target for a 20-pip gain in 25 minutes.
Strategy Tips
- Trade only during active sessions, such as London and New York, for stronger momentum.
- Focus on highly liquid pairs to reduce slippage and spread costs.
- Use a small fixed lot size due to the fast nature of M1 scalping.
- Avoid trading during major news releases to prevent sudden spikes and stop-loss hits.
- Exit early if the trend shows signs of reversing before reaching the target.
This scalping strategy effectively combines trend filtering with precise entry signals for MT4.
With discipline, fast execution, and proper risk management, traders can capture multiple small profits throughout active trading sessions.
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Download the “var moving average.mq4” indicator for Metatrader 4
