RCF MA Indicator

RCF MA Indicator

RCF MA Indicator For MT4 helps forex traders look at the markets using moving averages from a different perspective. Good trend confirmation too.

The RCF MA indicator for MT4 removes the lag associated with regular moving averages and provides the results as a histogram. The indicator is similar to the classic MACD forex trading indicator, but the underlying calculations differ. However, forex traders can trade this using similar trading strategy.

The indicator works well in all intraday chart time frames and higher. Furthermore, it is suitable for new and advanced forex traders. Additionally, the indicator is suitable for automated trading strategies. This indicator provides better results in confluence with other trend based technical indicators.

RCF MA Indicator For MT4 trading Signals

The indicator plots blue histogram bars with a ZERO level and a red line. Forex traders can adjust the indicator for long term trading purposes using the Fast MA, Middle MA and Slow MA in the input settings. The trading strategy is based on the appearance of the histogram bars above or below the ZERO level.

Once the histogram bars appear above the ZERO line it indicates a bullish market condition. So, traders should enter the markets with a buy trade and place a stop loss below the previous swing low to protect this position. The indicator does not project a profit target. So traders should book profits with a good RR or exit at an opposite trading signal.

Similarly, traders can enter the markets with a sell trade if the histogram bars start to appear below the ZERO line using a similar stop loss and take profit strategy.

Conclusion
In summary, the RCF MA indicator for MT4 helps forex traders to look at the markets using moving averages in a different perspective. Though forex traders can use this indicator as stand alone, it provides better results in confluence with trend following indicators.