Two Moving Average Crossover Alerts Serie MT5
- Indicators
- Boris Armenteros
- Version: 2.20
- Updated: 25 March 2023
- Activations: 20
Introduction
The "Two Moving Average Crossover" indicator for MetaTrader 5 (MT5) is a technical analysis tool that displays two moving averages and notifies when the moving averages cross each other.
The indicator calculates and plots two moving averages, one of which is faster and the other is slower. When the faster moving average crosses above the slower moving average, it is considered a bullish signal, indicating a potential trend reversal or the start of a new uptrend. Conversely, when the faster moving average crosses below the slower moving average, it is a bearish signal, indicating a potential trend reversal or the start of a new downtrend.
The indicator can be customized to use different types of moving averages, such as simple moving average (SMA), exponential moving average (EMA), Smoothed Moving Average (SMMA), or Linear-weighted Moving Average (LWMA). Traders can also adjust the period of each moving average to suit their trading style and preference.
In addition to plotting the moving averages, the indicator generates alerts when a crossover occurs. Traders can set up an audio or visual alert or receive an email or push notification when the crossover happens. This feature can help traders stay informed about potential trading opportunities even if they are not actively monitoring the chart.
How to use it
Here's a step-by-step guide on how to use this indicator:
-
Choose the two moving averages: The default settings for the indicator use a 14 period and 21 period simple moving average, but you can change these to any two moving averages that you prefer. To change the settings, right-click on the chart and select "Indicators List." Then, select the "Two Moving Average Crossover Alerts Serie" indicator and click "Edit." Here, you can change the moving average settings as desired.
-
Identify the trend: The indicator will help you identify the trend in the market based on the two moving averages. If the shorter-term moving average crosses above the longer-term moving average, a bullish trend is suggested, and if the shorter-term moving average crosses below the longer-term moving average, a bearish trend is suggested.
-
Wait for the alerts: The key signal in this indicator is when a crossover occurs. When a bullish crossover occurs, a buy signal is generated, and when a bearish crossover occurs, a sell signal is generated. The indicator will generate pop-up alerts and/or email alerts based on your chosen settings.
-
Enter the trade: Once an alert has been generated, you can enter a trade in the direction of the new trend. For example, if there is a bullish crossover, you can enter a long position, and if there is a bearish crossover, you can enter a short position. You can also use other technical indicators or price action signals to confirm the crossover and increase the probability of a successful trade.
-
Set your stop loss and take profit levels: It's important to set your stop loss and take profit levels to manage your risk and maximize your profits. You can use technical indicators, such as support and resistance levels or Fibonacci retracement levels, to set your stop loss and take profit levels.
-
Monitor the trade: Once you have entered the trade, you should monitor it closely and adjust your stop loss and take profit levels as necessary. You can also use trailing stop orders to lock in profits as the price moves in your favor.
Features
- Detects crossovers between two moving averages (MAs) on either the current or closed candle
- Both MAs can be set using any of the following averaging methods: Simple Moving Average (SMA), Exponential Moving Average (EMA), Smoothed Moving Average (SMMA), or Linear-weighted Moving Average (LWMA)
- Both MAs can be set to use any averaging period and any of the following prices: Close, Open, High, Low, Median, Typical, or Weighted
- Supports various types of alerts, including Dialog Box, Email, Push Notifications, and Sound Alerts
- By default, up arrows are displayed for buying signals and down arrows for selling signals
- Allows you to choose which signals to display (buy, sell, or both)
- Allows you to customize the symbol used to represent buy and sell signals.
- Option to prevent repetition of signals of the same type
- Customizable sign spacing for better visibility of the signals
- Works with any symbol and timeframe, including exotic symbols
- Compatible with any MetaTrader platform, regardless of the number of digits or other parameters
- Does not slow down the terminal performance or trading operations when used with other tools such as indicators, expert advisors, or scripts
Parameters
- Signal Trigger: determines when the signal is triggered - either on the closed candle or at the current candle.
- Signal Direction: determines the direction of the signal - buy signals only, sell signals only, or both.
- Prevent Signal Repetition: when set to true, prevents the same type of signal (buy or sell) from being displayed twice in a row.
- Signal Buy Code: sets the code for the arrow symbol used to represent a buy signal.
- Signal Sell Code: sets the code for the arrow symbol used to represent a sell signal.
- Signal Distance as ATR Multiple: sets the distance from the signal to the current price as a multiple of the Average True Range (ATR).
- Fast MA Period: sets the period for the fast moving average (MA).
- Fast MA Shift: sets the offset for the fast MA.
- Fast MA Method: sets the averaging method for the fast MA (SMA, EMA, SMMA, or LWMA).
- Fast MA Price: sets the applied price for the fast MA (Close, Open, High, Low, Median, Typical, or Weighted).
- Slow MA Period: sets the period for the slow MA.
- Slow MA Shift: sets the offset for the slow MA.
- Slow MA Method: sets the averaging method for the slow MA.
- Slow MA Price: sets the applied price for the slow MA.
- Label Alert: sets the label for the alert message.
- Enable Alerts: when set to true, enables alert messages.
- Enable Email Notifications: when set to true, enables email notifications.
- Enable Push Notifications: when set to true, enables push notifications for smartphones and tablets.
- Enable Sound Notifications: when set to true, enables sound notifications.
- Sound Filename: sets the sound file to be used for sound notifications.
Inaccurate indicator, normal moving averages crossover lines are better off this indicator.