Absolutely No Lag LWMA Indicator

Absolutely No Lag LWMA Indicator

The best Absolutely No Lag LWMA moving average indicator for identifying correct market trends on MTF MT5 charts. Identify potential buy/sell signals for forex and stocks.

Absolutely No Lag LWMA is the simplest MT5 trend indicator you may ever come across. It only uses a 15-period Linear Weighted Moving Average (LWMA) that provides accurate trends and buy/sell signals for forex and stock traders.

When testing Absolutely No Lag LWMA, we found that the indicator is suitable for all timeframes and analysis of MTF charts. In addition, you can use it to analyze the trends of any of the tradable assets available on the Metatrader 5 platform.

This guide briefly explains how this indicator identifies sustainable trend signals, including charting examples and MT5 setups.

How to determine forex and stock buy-sell signals by using the Absolutely No Lag LWMA in MT5

The slope of the indicator on the main chart showing the current value of the moving average using the least squares method. We predict trend conditions based on how price reacts around the LWMA line.

You will find that the LWMA value constantly increases during an up market, with the price of candles closing above the level of the indicator. Conversely, a price candle closing below the LWMA line signals a bearish trend. It also indicates the dynamic support/resistance position of the market trend, helping traders to set stop loss zones.

In the above example, we have decided to initiate a sell entry after the price rejects the main resistance and eventually drops below the LWMA line. We can set a stop loss above the current indicator level or immediate resistance. In addition, we can close a sell order when the price repeatedly starts to close above the LWMA line.

Conclusion
The Absolutely No Lag LWMA indicator is the perfect MT5 indicator for beginner trend following traders due to its simple demonstration of trend signals. It gives an idea of ​​the dynamic position of the trend line and helps to anticipate potential exit zones. Moreover, it works even better when combined with support/resistance and historical price channels.