MA Histogram Indicator

MA Histogram Indicator

MA Histogram indicator for MT4 plots the moving average crossover as histogram bars and provides forex buy and sell trading signals

The MA Histogram indicator for MT4 plots the moving average crossover as a histogram. It effectively plots the crossover of the slower moving average and the faster one. As a result, this indicator is beneficial for forex traders using the moving average crossover for technical analysis and trading signals.

The indicator is simple to comprehend and works well for new and advanced forex traders. Moreover, it works all intraday chart time frames as well as the daily, weekly and monthly price charts. Since the moving average crossover strategy can be used with a wide range of values, it works for scalpers, short-term and long term forex traders.

MA Histogram Indicator For MT4 Trading Signals

The indicator plots blue histogram bars in a bullish market condition and pink bars for a bearish market trend. The trading strategy of this indicator is based on the color change of the histogram bars.

If the histogram bars color change to blue indicating a bullish price trend, traders should enter a buy position with a stop loss below the previous swing high. On the other hand, at a color change of the bar to pink traders should consider a sell trade with a stop loss above the previous swing high.

The indicator does not provide a profit target, so traders should hold the positions and ride the trend with an exit at the opposite trading signal.

Many automated trading systems currently use the moving average for trend identification and entry signals. Moreover, technical forex traders use them as an additional confirmation of the entry and exit signals.

Conclusion
The MA histogram indicator for MT4 is an excellent forex trend following indicator. It works as a standalone trading system or with other indicators.