The EMA Trend Indicator applies four types of Exponential Moving Averages and generates crossover signals for determining trend directions. The EMAs used to build this indicator have been specially parameterized for determining the intraday trend conditions. So, you can try it for both scalping and intraday trading strategies.
EMA Trend suits trading all types of forex, stocks, cryptocurrency, and other financial assets. Besides, beginners may find its simple demonstration of trend signals really useful while trading in the live markets.
EMA Trend Indicator for MT4 Overview
The EMA Trend Indicator is combined with 21 and 34 EMAs. The developer of this indicator has used both EMA highs and lows for plotting two different dynamic price channels. The levels of the channels reflect the support and resistance areas of the price.
For trend confirmations, simply look for crossovers between 21 and 34 EMAs. Once you determine a trend direction, look for trading opportunities at the dynamic S/R levels.
Check Out: Top 10 Free MT4 Forex Indicators
EMA Trend Indicator for MT4 Explained
The 21 EMA moves above the 34 EMA when the trend is bullish. Conversely, the 34 EMA value drops below the 21 EMA portrays a bearish crossover signal. When the price is in a strong trend-following move, you’ll find both EMA highs and lows are plotting the same type of crossover signals.
Also, you’ll notice the price often plots reversal candlestick patterns when it comes closer to the moving average levels. During a bullish trend look for buy opportunities at the EMA-highs. Oppositely, for sell orders, try to activate your entry when the price rejects the EMA-lows.
EMA Trend Indicator for MT4: Buy Conditions
- 21 EMA value turns greater than 34 EMA
- The price finds support at EMA-highs
- SL below the EMA-low
- Exit with a 2R profit
EMA Trend Indicator for MT4: Sell Conditions
- 21 EMA drops below 34 EMA
- The price rejects to move above EMA-lows
- SL above EMA-highs
- Minimum profit target: 2R
