FX-mah Reversal Indicator is a Moving Average based trend-following forex trading indicator. It uses a dual-band of MAs and plots crossovers in order to signal the market trends. Finding trends following simple crossovers is a better idea than going for complex trend defining indicators, especially for newbie traders.
FX-mah Reversal Indicator has been built for intraday trading purposes, thus suits best with H1, H4 & daily charts within the MT4 terminal. However, this indicator can be applied to trade all kinds of forex currency pairs available in the financial markets.
FX-mah Reversal Indicator Overview
After the installation of the Indicator at the MT4 platform, your chart will appear like the following image:
FX-mah Reversal Indicator Explanation
FX-mah Reversal Indicator uses an 8-day (red) and 21-day (green) Moving Average (MA) in order to produce the crossover trend signals. These MAs are parameterized using custom algorithms in order to deal with lagging problems.
8 MA moves above the 21 MA represents the bullish crossover. On the contrary, 21 MA moves above 8 MA is considered as the bearish crossover signal for the market trend. Once a crossover is signaled, you may wait for a relevant price action setup for better accuracy. These 8 & 21 MAs can also be used as dynamic support and resistance of the market.
Also Try: The Best Forex Trading Strategy Ever
FX-mah: Buy Parameters
- 8 & 21 MAs plot bullish crossover signal
- A bullish bar closes right above the 8 MA
- Buy triggers at the break of the signaling bar’s high
- Set stop loss below the 21 MA
- Take profit whenever the price closes below the 8 MA
FX-mah: Sell Parameters
- 8 & 21 MAs plot bearish crossover signal
- A bearish bar closes right below the 8 MA
- Sell triggers at the break of the signaling bar’s low
- Set stop loss above the 21 MA
- Take profit whenever the price closes above the 8 MA