Free Forex Indicators (MT4), Trend Following Indicators

FRAMA Indicator

The FRAMA Indicator applies an especially parameterized moving average for identifying accurate trend conditions in MT4. It also comprises a template including the 50 MA for plotting crossover signals.

This indicator firmly functions any timeframes of MetaTrader platforms. However, it works perfectly within M1 to H4 chart as a scalping tool. Also, we’ve found the FRAMA indicator a good match for all forex pairs, stocks, and crypto-assets.

This guide explains how to apply the FRAMA Indicator in MT4 for determining precise buy/sell signals.

FRAMA Indicator Overview

FRAMA Indicator overview

FRAMA generates less frequent signals than regular day trading indicators s but weighs more on accuracy standards. Eventually, one of its templates includes a 50-period simple moving average for filtering the trend signals by applying crossover methods.

FRAMA Indicator Explanation

FRAMA Indicator explanation

The FRAMA uses a 10-period custom moving average for smoothing the price volatility and identifying the short-term trend status. However, using FRAMA alone may create frequent trading leads and cause unnecessary losses. For this reason, the developer of the indicator added a 50 MA alongside the main signal line for filtering the false signals.

When FRAMA is above 50 MA, we consider it a buy signal with a bullish trend confirmation. Conversely, following the bearish trend reversal, the opposite crossover will indicate a selling opportunity. Moreover, we’ll use the 50 MA level for determining the stop-loss zones.

Buy Signal Generation with FRAMA Indicator

FRAMA Indicator buy signal
  • FRAMA is above the 50 MA
  • The price breaks above the current FRAMA level
  • Stop loss below the 50 EMA
  • Exit long once the FRAMA drops below the 50 MA

Sell Signal Generation with FRAMA Indicator

FRAMA Indicator sell signal
  • The FRAMA curve breaks below the 50 MA
  • The price also drops below the current FRAMA level
  • Set stop-loss above the 50 MA
  • Exit short whenever the FRAMA line moves above the 50 EMA level

I have been actively trading the financial markets since April 2012. Besides trading with my personal money I am a technical analyst in a mutual fund that has Rs. 1 billion in assets under management. At my leisure, I love attending live music, traveling, and partying with friends.

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