Color fill moving average for MT4
The color fill moving average indicator for the MT4 trading platform is a relatively simple custom trading indicator. As the name suggests, the color fill moving average simply fills the difference between two moving averages.
Color fill Moving average indicator on a chart
The calculation of the moving averages are basically the same as you would use the default moving average indicator. The only difference is that the space between the long term and the short term moving average is filled with color.
In a way, the color fill moving average can resemble the Ichimoku trading indicator that is a default technical indicator used on the charts. The space between the Ichimoku cloud is filled.
The color fill moving average indicator basically does the same job. The other advantage of using the color moving average indicator is that it reduces the number of indicators to just one.
For example, if you were to use the 20 and 50-period moving averages, using the default MT4 moving average indicator, you would use two indicators. The first indicator is set to 20-period and the second indicator is set to 50-period setting.
Depending on how complex or simple your trading strategy might be, the number of indicators used on your chart can get too big. This can eventually lead to slower performance of your MT4 trading terminal.
This is something that traders would like to avoid. In this aspect, the color fill moving average is a great way to reduce the number of indicators by simply combine two similar indicators into one.
The color fill moving average is a custom trading indicator which you can download from this article. Move the downloaded ex4 file into your MT4’s indicator folder. Restart your MT4 trading platform and head over the navigation window and right click and select refresh to have the newly installed color fill moving average indicator to be picked up.
Double click on the indicator or drag and drop it onto the chart of your choice. The configuration settings are shown below.
MT4 Moving average color fill indicator
Don’t let the number of configuration settings to confuse you. Because the indicator combines two indicators into one, there is a bit of customization to be done for all the various combinations that come with using moving averages.
MA Color fill 1, 2, 3, 4: This feature allows you to customize the color fill. Using the values from 1 through 4, you can set whether the color should be just between the moving averages or whether you want the lines to extend lower to show how far price has moved from the two moving averages.
MA1 Period: The period setting allows you to set the look-back period of the moving average.
MA2 Period: Just as the above, the MA2 period allows you to set the lookback period for the second moving average. Typically, if you are using the regular two moving average approach, then the MA1 should be shorter than MA2 or vice versa.
MA1 Shift: The shift allows you to move the moving average a few bars into the future. This is the same function as the shift you will find when using a regular moving average indicator.
MA2 Shift: The shift for MA2 shows the shift of the moving average for the second moving average.
MA1 Method: The method allows you to configure what type of moving average formula to be used for the first MA.
MA2 Method: This allows you to configure the moving average method for the second MA. You can change the values to show whether to use the simple, exponential, smoothed or linear weighted moving average values
MA1 Price: Using this configuration you can set the type of price to be used in calculating the moving average
MA2 Price: Same as above, the MA2 price allows you to choose the type of price. You can use one of the many combinations from the open, high, low and close to median or typical price.
Label Size: The label size allows you to customize the values of the output. This will enable you to see the moving average periods that you are using
Label Bold: Toggling between true or false will simply set the values to use a bold font.
MA1 Label color: Using this setting you can change the color of the first moving average
MA2 Label color: Using this setting, you can change the color of the second moving average. With the above two settings, the colors change depending on whether the moving averages are bearish or bullish. For example, if the short term moving average is above the long term moving average, then the MA1 label color will be filled. Likewise, when the short term moving average is below the long term moving average, the second color is filled. Using these settings, you can instantly see whether the markets are bullish or bearish.
Label Corner: This setting will allow you to custom place the labels. The default is set to three which means that the label or the values of the two moving averages will be displayed on the bottom right corner of the chart. Note that for this to work, you need to enable another setting in the configuration window.
Label left right: This value allows you to adjust the offset of where the label should be printed from left to right perspective.
Label top down: This value allows you to offset the area where the label should be printed from a top-down perspective. If you are using too many indicators which also plots the values then the above two settings are a good way to ensure that the values or the labels do not interfere with other values that are plotted on the chart
Show labels: This feature allows you to toggle between displaying the values. When set to true, you can use the above four configuration settings to customize where the values of the indicator should be plotted.
The color fill moving average as you can see is a simple custom moving average tool. By eliminating the need to use two moving averages, this can be a handy tool in your trading toolkit.