What is the Best Moving Average Indicator for MT4?

Several different Best Moving Average Indicators are available for use with MT4, and each has its benefits and drawbacks. Ultimately, the best indicator for forex traders to use will depend on their specific trading strategy and preferences.

Best Moving Average Indicator

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  1. Simple Moving Average (SMA): A simple moving average is calculated by adding up the closing prices for a certain number of periods and then dividing that number by the total number of periods.
  2. Exponential Moving Average (EMA): An exponential moving average gives more weight to recent price data and less weight to older data.
  3. Smoothed Moving Average (SMMA): A smoothed moving average uses a different method of calculation that aims to reduce the lag often associated with moving averages.
  4. Linear Weighted Moving Average (LWMA): A linear weighted Moving average gives more weight to recent prices and less weight to older ones.

How to use the Best Moving Average Indicator for MT4?

Forex traders use moving averages (MA) as one of their primary tools to help them predict future market behavior. MA can be used in several ways, and you must understand how it works before you start trading with it. This article will discuss the best way to use MA for MT4 forex trading.

The first thing to understand is that MA is not a buy or sell signal – instead, it’s simply a tool that helps you identify whether the market is heading higher or lower over time. It shows you how often the prices on your chart have been above or below the average value over the past several periods. By using MA, you can better control your risk while making informed trade decisions based on current market conditions.

When should I use Moving Averages?

There are two main times you would want to use moving averages: during short-term and long-term analysis. During short-term analysis mode, MA can help identify trends and reversals earlier than usual; this allows you to make more informed trades before they become too costly/risky.”

During long-term analysis mode, though prices may move around erratically from day to day, an underlying trend will eventually emerge, which can be captured using a more extended timeframe mA. This analysis requires patience and discipline (and plenty of coffee) but ultimately yields much greater returns than trading without research.

While various moving averages are available, the most popular and well-known type is the simple 20-day MA. This particular can be used for short-term and long-term analysis has a relatively low lag (meaning it provides accurate signals quicker than other types), and is often considered one of the most reliable indicators when trading in Forex markets.”

Best Moving Average Indicator MT4 trading settings

Forex traders often use moving averages (MA) as a way to identify overbought and oversold conditions in the market. However, not all MA indicators are created equal. This article will discuss four of the most popular MT4 forex MA indicators and recommend their best trading settings.

1) 50-day simple Moving Average: The 50-day simple moving Average (SMA50) is probably the most common type of MA used by Forex traders. It is calculated using the latest fifty data points from the given currency pair’s price chart and serves as a valuable indicator of short-term trends. The SMA50 should be used when considering long positions or when trying to enter or exit trades based on its signals. When set correctly, it can provide reliable indications of whether prices are overbought or oversold and help you make more informed decisions about your trade strategies.

2) 200-day Simple Moving Average: The 200-day SMA is similar to the 50-day SMA in that it uses a subset of data points from a more extended period – in this case, two years instead of five – but provides additional insights into longer-term trends because it includes more extreme values than the 50-day SMA does. Like with other MAs discussed here, setting up an effective 200-day SMA requires accurate technical analysis skills; if you do not know how to measure the distance between various price bars and calculate periods for trend analysis

Best Moving Average Indicator Advantages

There are several advantages to using a moving average indicator:

-It can help you spot Trends – When used with a long enough timeframe, a Moving Average will help identify whether there’s been an upward or downward trend in prices. This information can be helpful when deciding which assets to sell or buy.

-It Provides Accountability – The Moving Average gives you visual confirmation that your investment strategy is behaving as expected. If it starts going down instead of up, for example, this might indicate that you need to adjust your trade plans accordingly.

-It Can Help You Reduce Stress Levels – By taking into account past data points, the Moving Average reduces anxiety and fear associated with making risky investments. This prevents costly mistakes from being made due to emotional factors alone!

Best Moving Average Indicator Disadvantages

Forex Best Moving Average Indicator Disadvantages:

-Moving averages can be lagging indicators, meaning they may not reflect changes in the market immediately.

-They may provide false positive signals (predicting a trend when there is none) and cause investors to become overconfident.

-Moving averages can also lead to trading bias – focusing on shorter data periods rather than longer ones, which can result in increased losses.

BMA Indicator installation on MT4

To install a moving average indicator on the MT4 platform, you can follow these steps:

  1. Download the indicator file from a reputable source and save it on your computer.
  2. Open the MT4 platform and click on the “File” menu at the top of the screen.
  3. Select “Open Data Folder” from the drop-down menu. This will open the folder where the platform’s files are stored.
  4. Navigate to the “MQL4” folder and then the “Indicators” folder.
  5. Copy the indicator file you downloaded earlier and paste it into the “Indicators” folder.
  6. Close the MT4 platform and then reopen it.
  7. Go to the “Navigator” window, which is located at the bottom of the screen.
  8. Click on the “Custom Indicators” folder, and see the indicator you just installed listed there.
  9. Drag and drop the indicator onto a chart to apply it.
  10. Configure the indicator’s settings as desired and start using it to analyze the market trends.

It is always good to check the authenticity of the source you are downloading the indicator from. Also, double-check the indicator’s compatibility with the version of MT4 that you are using.

Best Moving Average Indicator mt4


A moving average is an important technical indicator that helps traders understand the behavior of a security over time. Moving averages can provide false positive signals (predicting a trend when there is none). They can lead to trading bias – focusing on shorter data periods rather than longer ones, which can result in increased losses. However, using a moving average wisely can help you better understand the market’s behavior and make more informed investing decisions.

Author: Dominic Walsh

I am a highly regarded trader, author & coach with over 16 years of experience trading financial markets. Today I am recognized by many as a forex strategy developer. After starting blogging in 2014, I became one of the world's most widely followed forex trading coaches, with a monthly readership of more than 40,000 traders! Make sure to follow me on social media: Instagram | Facebook | Linkedin | Youtube| Twitter | Pinterest | Medium | Telegram Channel | Quora | Reddit

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