BACK TO ARTICLES

The BMA Channel Indicator for Metatrader 5

 
 
 
 
 
 
 

Forex indicator BMA is a modification version of the Moving Average indicator. The indicator consists of three moving lines located on the price chart. Central, upper and lower.

The central line is a simple moving line, which can also be exponential, smoothed and weighted. Upper and lower the lines serve as support and resistance levels. The indicator is used with any currency pairs and timeframes, but it is best to use the H1 interval.

The BMA Indicator

Input parameters

The BMA indicator consists of several parameters that allow you to create more convenient conditions for trading at the own discretion.

  • -MA Period - period for calculating the indicator's central line. The default value is 49.
  • -MA Shift-shift the moving averages of the indicator horizontally. The default value is 0.
  • -MA Method-method of drawing the indicator's center line. The default value is Simple.
  • -Percentage - percentage value of the vertical shift of the upper and lower lines of the indicator. The default value is 2.

It can be also changed the colors and width of the moving lines in the indicator settings.

Inputs of the BMA

Indicator signals

The BMA indicator, like many indicators based on moving averages, gives a signal when the price crosses a certain level. That is, after the price crosses a certain level, a long or short position is opened.

Signal for Buy trades

  • -The signal candle is located above the level of the lower and central moving averages, and then crosses the level of the upper moving average.

In this case, a buy trade is opened. The trade should be closed when a reverse signal is received. A small stop loss should be used, as the price can break through the lines, and the lines themselves can change direction.

Signal for Sell trades

  • -The signal candle is located below the level of the upper and central moving averages, and then crosses the level of the lower moving average.

Conclusion

The BMA indicator is a new indicator on the trading market. The indicator is built on the basis of three moving averages, and therefore its use will not be difficult. It is only needed to monitor the price crossing the upper or lower line. However, a sharp change in the direction of the lines and the price crossing the level can also occur above or below the extreme lines. Therefore, along with the BMA indicator, it is recommended to use additional indicators and tools.

FREE DOWNLOAD FOR MT5

BACK TO ARTICLES