The T3 Moving Average represents an easy trend-following forex trading indicator for MT4 platforms. It plots simple crossovers between its special T3 and simple moving average. The crossover signal it generates can be read by any traders who understand how the moving average works.
This guide explains how the T3 Moving Average indicator works and how to apply it for trading in the real markets through the Metatrader 4 platform.
T3 Moving Average Indicator Overview
This indicator offers an alternative approach to trend-based traders who seek both trend signals and key market areas for executing trade entries. While using this indicator, a trader only needs to spot the crossovers between MAs and the price positions compared to the indicator level for determining the trade opportunities.
According to our review, T3 Moving Average offers a universal trend trading solution for both beginners and expert traders. Because it suits all sorts of MT4 timeframes and supports trading all kinds of financial assets available for online trading.
T3 Moving Average Indicator Explained
This indicator applies a 14-period T3 MA and a 20-period simple moving average (SMA) for identifying market trends and levels. The 20 SMA moves much slower than T3 but plots strong dynamic support/resistance levels. On the other hand, T3 makes a quick reaction to the changes in price-actions and shows short-term S/R levels of the price.
T3 moves above 20 SMA means it is a bullish crossover. When you get a bullish trend confirmation, consider the moving average levels as support and target those areas for triggering buy orders.
For bearish crossovers, the T3 must go below the 20 SMA level. In such conditions, traders may choose to execute sell orders when the price starts to treat the MA levels as resistance. For take-profits simply depend on opposite crossover signals to your trade entries. Besides, you may use the 20-SMA level as the key stop-loss area.
Also Read: Exness Review – Forex Broker Reviews
T3 Moving Average Indicator: Buy Conditions
- T3 moves above 20-SMA
- The price finds support at the T3 level
- SL below 20-SMA level
- Take profit when T3 goes below 20-SMA
T3 Moving Average Indicator: Sell Conditions
- T3 turns lower than 20-SMA
- The price treats the T3 level as resistance
- SL above the current 20-SMA level
- TP at an opposite crossover