The Forex Indicator MA allows is to identify the direction of a forming trend.
How to Add the Forex Indicator MA on MT4?
The parameters of this indicator are:
Period: It indicates the number of candlelights to make the MA line.
MA Method: Indicates how the average is going to be calculated. Simple; all the data is taken equally. Exponential; the last data will have bigger relevance than the former data.
We mostly use the MA with the Simple and Close parameters. To identify trends clearly, we use a couple of 2 MAs. The first one of few periods will be the fast average and the one with more periods will be the slow average.
In this example we can see two MA. The red one has 5 periods and the blue one has 20 periods.
When the red one crosses upwards, the blue one (yellow area) is a sign to take long positions. On the contrary case, short positions will be taken.