3 EMA Crossover Indicator

3 EMA Crossover Indicator

The 3 EMA Crossover indicator displays bullish, bearish, and neutral market trends using 3 Exponential Moving Averages of different periods.

The 3 EMA Crossover indicator is a trend analysis tool for MetaTrader 4 (MT4) that displays the trend condition of a financial instrument. It was built with three (3) Exponential Moving Averages (EMA) to signal when the market’s trend is bullish, bearish, or neutral.

Furthermore, the indicator may be used along with other trend indicators as a confluence to identify buy/sell setups. Besides, it is recommended for novice, intermediate, and advanced forex traders to identify scalping and day trading setups.

3 EMA Crossover Features

The 3 EMA Crossover indicator uses the histogram bars to display the trend direction of the market. The histogram bars are painted whenever the three exponential moving averages cross over to the upside or the downside in the background.

The green histogram bar signals a crossover to the upside, suggesting a potential bullish trend, while the red bar depicts the crossover to the downside, indicating a bearish trend. Furthermore, the indicator also displays neutral market trends with the orange histogram bars.

Benefits of the Indicator
Visible buy/sell signal: The indicator paints a green/red bar only when the crossover between the Exponential moving averages is confirmed. This helps to reduce the incidence of opening a buy/sell signal Prematurely.

User-friendly: The histogram bar feature of the indicator is the game-changer; it makes it suitable for beginner forex traders to see and interpret the trend direction of the market at a glance.

Trend Analysis: Finally, the indicator would also come in handy to help in strengthening technical analysis, especially for beginners and intermediate traders.