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Moving averages are often used in trading mainly to determine the current market trend, which serves as the basis for finding the moment to open positions. For the same purpose, the 3 MA Buy Sell indicator uses three moving averages at once in its calculations, fast, medium and slow, followed by moving averages with different periods. Once these three moving averages cross each other in the right order during a certain trend, the indicator will form an arrow on the chart in the direction of the trend. If the current trend is up, then the arrow will be directed up and will have a color with a value of growth, and if, on the contrary, the market trend is down, thus the arrow with a falling color will be directed down. Thus, the indicator can be considered very easy to use, since trading will be made only taking into account the formation of arrows on the chart.
Trading using the 3 MA Buy Sell indicator can be made on any convenient timeframe, using any currency pairs.
Input parameters
In the settings of the 3 MA Buy Sell indicator, there are 10 input parameters that are responsible for the value of the moving averages that form the basis of the indicator. In addition, in the Colors section, it can be changed the color and size of the arrows displayed on the chart.
- FasterMA - fast moving average period of the indicator. The default value is 5.
- FasterShift - deviation of the fast moving average values of the indicator. The default value is -5.
- FasterMode - fast moving average smoothing type. It defaults to 1, which is moving-Simple.
- MediumMA - medium moving average period parameter. The default value is 20.
- MediumShift - medium moving average deviation period. The default value is -5.
- MediumMode - parameter for smoothing the medium moving average. The default value is Simple, set to 1 in the settings.
- SlowerMA - parameter responsible for the period of the slow moving average. The default value is 34.
- SlowerShift - deviation parameter for slow moving average values. The default value is 0.
- SlowerMode - type of smoothing of slow moving average values. The default value is 1, which is a Simple moving average.
- SoundAlert - a parameter responsible for playing a sound alert after receiving a signal that is formed under certain market conditions.
Indicator signals
Despite the way it works, the use of any indicator in its calculations, almost all arrow indicators form a signal to open positions according to the same principle, the 3 MA Buy Sell indicator is no exception. That is, as soon as an arrow appears on the chart, it can be opened a position in its direction. But before the formation of a certain arrow, the 3 MA Buy Sell indicator waits for the intersection of its moving averages. If the moving averages crossed so that the fast one is above, followed by the medium moving average, and below it is slow, then an uptrend is determined in the market, and an arrow appears at the place of their intersection with the value, an arrow appears with the growth value. And if the moving averages cross in the opposite order, then the market trend is down, and then an arrow with a falling value is formed.
Signal for Buy trades:
- Under a certain candle, an arrow is formed with an increase in color, which goes up.
After the formation of such an arrow on the chart, it can be opened a long position. Such a position should be closed after a new arrow forms on the chart. This may indicate a reverse crossing of the moving averages, that is, a change in the market trend, which makes it possible to open a position in a different direction.
Signal for Sell trades:
- An arrow is formed on the chart, colored in the color of the fall value, which goes down.
After the appearance of such an arrow above a certain candle, it can be opened a sell trade, which also should be closed after a new intersection of the moving averages, that is, when a new arrow appears on the chart. At the moment, this can be regarded as a signal to open a new position.
Conclusion
The 3MA Buy Sell indicator is very convenient to use, it allows quickly and accurately finding the best moment to enter the market, thanks to the use of moving averages with different periods in the calculations. After that, the indicator independently searches for the point of their intersection and forms an arrow, and then a signal to open certain positions.Although the indicator is really easy to use, it is very effective, which can be seen even when using a demo account.
