Color MA Indicator is one of the simplest but best Forex trend indicators around the market. Why? It demonstrates the current market trend, entry and exit signals with a single colored MA line and its backtest record suggests that its winning rate is much higher than another same level trend following indicators around the market.
Color MA Indicator is very much admired by newbie traders who look for less complex indicators with a simplicity of use. Besides, this exceptionally effective Forex indicator suits with all kind of Forex currency pair window and fits fine with all sorts of timeframe charts.
Color MA Indicator Overview
Once you are done with the installation of Color MA Indicator at your Forex MT4 indicator, your trading chart will be appeared as the following image:
Color MA Indicator uses a specially designed 12-day period MA around the price bars at the main chart window. It turns green and the price keeps closing above its level signals the buy entry along with the bullish trend. On the other hand, the Color MA turns red and price bars holding their positions below the MA level signals a sell entry along with the bearish trend of the market. Even though it is simple and profitable, we recommend traders to focus on price action changes near the MA levels and be strictly disciplined while trading with this indicator.
Color MA Indicator: Buy Parameters
- Color MA Indicator turns green
- Price closes as bullish bars right above the MA level
- Buy triggers at the break of the respective bullish bar’s high
- Stop loss limit should be set below the current swing low or below the low of the signaling bar
- Exit long/take profit once the Color MA Indicator turns red
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Color MA Indicator: Sell Parameters
- Color MA Indicator turns red
- Price closes as bearish bars right below the MA level
- Sell triggers at the break of the respective bearish bar’s low
- Stop loss limit should be set above the current swing high or above the high of the signaling bar
- Exit short/take profit once the Color MA Indicator turns green