There are various types of moving average such as SMA (simple moving average) and EMA (exponential smoothing moving average). WMA (weighted moving average) is another type of moving average - characterized by being calculated with emphasis on the most recent data.
The indicator "WMA_CROSS" for MT4 introduced this time is useful when trading with a WMA.
This indicator uses the short-term WMA, long-term WMA, and WMA for closing to determine the timing of the crossover trade. For example, a blue arrow is displayed when the short-term WMA exceeds the long-term WMA. In this case, it is a good idea to place a buy order. Conversely, when the short-term WMA falls below the long-term WMA, a red arrow appears. When you see the red arrow, it's your chance to sell.
This indicator also tells you when to exit a trade. For example, if the short-term WMA falls below the WMA used for closing after the blue arrow is displayed, an “☓” will appear on the chart. It is a good idea to close the buy order when this symbol appears. In the same way, if the short-term WMA exceeds the WMA used for closing after the red arrow appears, "☓" will also be displayed to indicate the signal to close the sell order.
In the image below, the WMAs using the parameters used by this indicator is displayed together with the "WMA_CROSS" indicator. The red line is the short-term WMA (period 5), the green line is the long-term WMA (period 50), and the yellow line is the WMA used for closing (period 20).
This representation should give you a better idea of how this indicator works.
The "WMA_CROSS" indicator is useful when trading WMA crossovers. An exit (closing) signal is also included in this indicator, making it easy to trade.
- ShortPeriod - The period used for fast WMA calculation
- BigPeriod - The period used for slow WMA calculation
- ExitPeriod - The period used for exit WMA calculation
Download the "WMA_CROSS" indicator from the button below
Do you need help with installing this indicator into MT4 for Windows or Mac OS? Our guide HERE will help you.