Moving Average Ribbon Indicator

Moving Average Ribbon Indicator

Moving average ribbon indicator for MT4 provides arrow based forex trading buy and sell signals on MA crossover.

The Moving average ribbon indicator for MT4 is a combination of two moving averages. Both moving averages form a ribbon based on the distance between them. The crossover of the moving averages acts as a trading signal. The indicator provides green and red arrows on the chart according to bullish and bearish market conditions. So, forex traders can easily identify the trading signals and buy and sell accordingly.

The indicator displays ribbon and green and red arrows, so it’s easy for new forex traders to use the indicator. However, advanced forex traders can use the indicator to formulate complex technical trading strategies. Moreover, the indicator works well on intraday price charts and the daily, weekly, and monthly price charts. As a result, the indicator is well suited for scalpers, and short-term and long-term traders. Furthermore, forex traders can download the indicator for free and install it easily.

Moving Average Ribbon Indicator For MT4 Trading Signals

The above GBPUSD M30 candlestick price chart shows the moving average ribbon indicator for MT4 in action. The indicator shows the up-arrow trading signal in Green and the down arrow in Red.

If the indicator plots a Green arrow on the price chart, it indicates the beginning of a bullish market. So, forex traders should place a buy trade with a stop loss below the previous swing low. The indicator does not provide a profit target so forex traders can book profits with a good risk reward ratio or at an opposite trading signal.

Similarly, if the indicator plots a red arrow on the price chart it indicates the beginning of a bearish market trend. So, traders should enter the market with a sell position and place a stop loss above the previous swing high.

Forex traders can use the indicator and identify the trend direction in a higher time frame chart. And use the lower time frame chart to identify the best entry point. As a result, this helps the technical forex trader to identify the major trend and stay in the direction of the trend. Staying in the trend direction eliminates false signals and improves the win rate of a trader.

Conclusion
The Moving average ribbon indicator for MT4 applies the moving average crossover method to identify bullish and bearish market conditions. Furthermore, the buy and sell signals are plotted on the chart as arrows and are easy to identify and trade based on them. Moreover, the indicator is free to download and easy to install.