AMA Indicator For MT4
Table Of Contents:
- AMA Indicator For MT4
- Some of the Major Advantages and Disadvantages of using the AMA Indicator For MT4
The AMA Indicator For MT4 is an indicator that built for the Meta Trader 4 charting platform. It can easily help a trader to detect the direction of a trend as well as to spot entry opportunities into a current trend.
It looks and behaves very much like the Parabolic Support and Resistance, but it is, however, much closer to the price action and does not change its signals based on the price merely touching its signal dots in the trading charts. It can very easily be incorporated with other trading strategies and can work or all timeframes and currency pairs or trading assets.
It is built based on the Moving Average indicator and can help traders to derive a lot of trading insights during the trading day. Some of the trading insights and advantages it can help a trader to derive as well as the disadvantages of using the indicator are outlined and discussed below as follows.
Partially Automated Trading Besides Your Day Job
Alerts In Real-Time When Divergences Occur
Some of the Major Advantages and Disadvantages of using the AMA Indicator For MT4
One of the major advantages of using the AMA Indicator For MT4 is that it can help a trader to identify the correct direction of a trend in any currency pair or trading asset that the indicator is actively attached to during the trading day.
This means that the indicator can very easily help the trader to know which direction the price is currently heading to on the trader's current timeframe of choice or on whatever timeframe or trading currency/trading pair that the AMA Indicator For MT4 is currently attached to.
The trader using the indicator would not have to go through the extremely tedious process of using technical analysis in order to determine what direction the price is currently headed as he or she would just need to attach the indicator to his or her current trading pair's charts and would then be able to see the direction of the currency pair on that timeframe or chart. This direction would be a prediction based on the analysis and calculations done automatically by the AMA Indicator For MT4.
The trader would also not need to worry about whether he or she needs to be on the right side of the markets as he or she can very easily stick to the directional signals produced by the indicator. Once a trader can stick to such direction signals produced by the AMA Indicator For MT4, he or she would then be able to profit from the directional statistical edge produced by the indicator.
In order to achieve this, however, the trader would need to ensure that he or she always takes the signals from the AMA Indicator For MT4 very consistently and does not take them arbitrarily.
Once a trader chooses which signals he or she would or would not take based on the direction signals produced by the indicator. it could void the statistical edge by the indicator. This would then limit the number of profits that can be made by the trader by using the indicator.
Another very important advantage of using the AMA Indicator For MT4 is that it can help the trader to stay in a trending market all through the period that the market is currently trending.
This means that the trader who has the indicator attached to his or her trading charts can use the signals produced by the indicator to maintain his or her position in a currently trending market or currency pair as long as the trend is still active. For instance, a trader who uses the indicator would easily find that once in a buy trend, for instance, the indicator would print blue dots on the trader's charts.
These blue dots printed on the trader's screen will be below the price and the trader can then stay in the trend, keeping all of his or her positions open or taking off some of his trading positions along the way, but not leaving the trade completely as the indicator would print dots of a different color the moment that the trend starts to change its direction on the trader's current chart or active timeframe.
The indicator would also exhibit the same behavior in an active downtrend. This way, it is easy for the trader to both identify a trend and ride the trend as long as it continues regardless of which direction the trend is hs also an example of how a trader can easily ride a trend until such a trend ends during the trading day.
Using the AMA Indicator For MT4 can also help a trader to identify profitable entry opportunities into a trend and take advantage of them.
This implies that a trader who has the indicator attached to his or her trading chart would be able to identify the exact times within a trend where there are opportunities to either buy or to sell in the direction of the trend or to take entries against the general trend direction with the hopes that the trader can use the entry to catch the reversal opportunity within the market.
The trader would first wait to see that the market is trending already. Once the trader spots that the market is already trending, he or she would then wait for a retracement or pullback in the opposite direction to the direction of the new trend.
Once a price retracement occurs, the trader would then need to watch for the indicator to create a new signal in the direction of the new trend. The indicator would need to create a blue dot for a buy or a red dot for a sell. Once a trader spots the new signal in the direction of the newly forming trend, he or she can then take a trend-continuation trade in the direction of the newly forming trend.
This way, the trader can use the indicator to identify unique opportunities and enter such opportunities in the direction of the trend. For a trade against the trend, the trader would need to watch for when the indicator prints a signal that is against the general trend, He or she would immediately then take such a signal and set a small stop-loss in case the market does not reverse. This way, the trader can catch reversals in the markets.
