XLV Moving Average MT5 is simply a 21-day simple moving average but this indicator has certain advantage over the ordinary moving average. That is XLV moving average indicator can change its color when the direction of the market has changed. This special feature of XLV moving average indicator helps trader filter the trend within a glance. 21-day moving average is one of the most widely used moving averages in today’s trading world. 21-day moving average is popular among the swing traders because it helps to catch you the swings of the market. A 21-day moving average is neither too short nor too long; it is the best possible moving average period for swing trading purpose.
XLV Moving Average Overview
When you install XLV Moving Average in your MetaTrader 5, your chart will look like this:
|Number of Indicators
|H4 and Daily
XLV Moving Average Anatomy
You should always keep in mind that, as moving average is a trend following indicator you should use it in a trending market environment. When the market is too choppy or flat this indicator can be a nightmare. XLV Moving average works best in higher time frames like 4-hour and Daily time frames.
Before trading with this indicator I assume that you understand the basic concept of market trend. You should be able to identify primary trend, secondary trend, and minor trends. You have very high chance of winning trade when all these trends are in the same direction.
Of course, such trends don’t occur all the time, so you should not trade frequently. Wait for the right time and make a big one when it occurs.
Another Great MT5 Indicator: Support and Resistance Indicator MT5
XLV Moving Average: Buy Parameters
- Major trend of the market should be up.
- XLV moving average indicator should turn blue from red.
- At least three candles should close above the blue XLV moving average indicator.
- Place your buy trade when above parameters are met.
- Set your stop loss below the recent support level.
- Book your profit when three candles close below the XLV moving average indicator.
XLV Moving Average: Sell Parameters
- Major trend of the market should be down.
- XLV moving average indicator should turn red from blue.
- At least three candles should close below the blue XLV moving average indicator.
- Place your sell trade when above parameters are met.
- Set your stop loss above the recent resistance level.
- Book your profit when three candles close above the XLV moving average indicator.