LSMA In Color Indicator

LSMA In Color Indicator

LSMA in Color applies least square moving average to identify bullish and bearish forex trading signals. Best for forex trend traders.

The LSMA in color indicator for MT4 uses the Least Square Moving Averages and signals bullish and bearish forex trends. It calculates the least square linear regression line and makes projections of the future indicator line. In simple terms it uses the current price levels to predict the best possible outcome of the indicator line in the future.

The indicator is simple to use and is well suited for new and advanced forex traders. Moreover, it works well in all intraday price chart as well as the daily, weekly and monthly charts. Furthermore, traders should be aware that the indicator re calculates according to price changes. So, advanced traders should adapt accordingly.

LSMA in Color Indicator For MT4 Trading Signals

The indicator plots a multi colored indicator line on the price chart. It changes the line color to green in a bullish trend, red in a bearish trend and yellow in a neutral price trend. The best trading strategy is to enter the markets based on the line color change.

If the color changes to green, traders should consider entering the markets with a buy trade. Additionally, a stop loss below the previous swing low should protect the position. On the other hand, traders can hold the positions and exit at an opposite trading signal or if the line changes to yellow.

It is prudent to abstain from trading and stay at sidelines if the color changes to yellow. However, if the line changes to red, traders can enter a sell position and follow the above strategy to exit with a stop loss and profit target.

Conclusion
The LSMA in Color indicator for MT4 is a trend indicator suitable for forex trend traders.