Hi @PipPwner, The SMA20 is a starting point as most new traders know this Indicator.
You can use either method… it’s what gives you the best result over time… price offen bounces off the Coloured MA and continues on trend without triggering a change in colour closing the position early
Or (like AUDNZD) you can close on change of colour or conservatively when price crosses the lower period white MA. It’s what the trader feels works for them…
The pairs volitility will determine which MA Type and the period used… the AUDNZD is a particularly slow moving pair (the AUD & NZD frequently move together), So a WMA 6-9 can be used.
It’s all about getting a nice smooth flow from the MA Coloured Indicator.
The method I use is to scroll through the low spread pairs until I find one that has a clean “wave motion”, then I overlay the MA, trialing various MA Types until it shows clear up and down trend changes.
Once you have this in place lower the periods until the MA starts to break into small segments, this is what will whipsaw you, so once you see this toggle the periods back up until the MA is clear again… you have set the MA Slope to the pairs volatility.
I am sure your already aware that the tighter the MA (WMA, Vidya) or the lower the periods the more pips you can gain with the downside being more false signals… it’s finding the balance.
Great to hear it is working for you… You’ll notice I have an Email and a Sound Alert coded into my Ctrader version (I code) If I am out, the Email Alert sends a contact with Symbol, Timeframe and which Indicator triggered the Alert or If I am in my office the Sound Alert will read out the same information…
I don’t use MT4 so I don’t know anyone that codes the Indicators. One of the main updates I have made to my software recently is the comprehensive alert systems, which is allowing a hell of a lot less screen time be required to trade the 1 hour + timeframes with ease…
I hope this has been of help with your trading this strategy.
Edit: Have a look through this Website, they have an IOS/Android App that you can setup alerts (For FREE) across a number of Indicators. They have paid content… but a lot of very, very useful content available to your mobile device for FREE.