XMA Indicator for Meta Trader 4
Table Of Contents:
- XMA Indicator for Meta Trader 4
- Some Advantages and Disadvantages of using the XMA Indicator for Meta Trader 4
The XMA Indicator for Meta Trader 4 is an indicator that is built on the Meta Trader 4 trading and charting platform that is built on the Moving Average indicator. This indicator helps a trader to spot entries in the trend direction, and also to spot powerful divergence opportunities between price and the indicator. Traders can gain a lot of insights from using this indicator and some of these insights are outlined and displayed below.
Partially Automated Trading Besides Your Day Job
Alerts In Real-Time When Divergences Occur
Some Advantages and Disadvantages of using the XMA Indicator for Meta Trader 4
One of the major advantages of using the XMA Indicator for Meta Trader 4 is the entry signals it creates for the Trader. Using this indicator helps the trader to spot very powerful entry areas in price based on how the price is currently interacting with the Exponential Moving Average. This helps the trader to get an overall picture of how he or she can get into the price action based on how the interaction happens and what happens after these interactions.
Traders can also rely on the signals created by the XMA Indicator for Meta Trader 4 as they are mostly very accurate especially when taken by the trader religiously. This means that the trader would need to take these setups without cherry picking which ones he or she will take and which ones he or she will not take.
An example of an entry using the XMA Indicator for Meta Trader 4 would be when the indicator gives out a signal for a downtrend. The Trader spots this signal and then compares it with a higher timeframe direction. If it doesn't align with higher timeframe setups, the Trader discards the signals.
If it aligns with higher timeframe setups, the Trader takes the signal. Next, the trader then apportions an exact percentage of the entire balance for the trade in case it ends in a loss. After the trader has done all this, then he can take the trade. That way, the Trader won't need to worry about the trade or keep looking at his charts just to make sure that the trade works out. He can just take the trade and forget about it completely.
Another way that the XMA Indicator for Meta Trader 4 can be traded is when it is combined with price action trading methods like the break of a trading range or the break of a trend line. These two work excellently well so the trader does not need to take any of them in isolation. When the trader spots an entry or is given an entry by the system, the next natural step for the Trader should be to look for a confirmatory trend or pattern or indicator and this does not just apply to this system. It also applies to all other indicators as the price sometimes would send a different signal to the indicator that the trader is working with and then the Trader becomes confused.
As a general rule of thumb, the Trader should always look out for opportunities where other trends or patterns or indicators can confirm what price action is doing. This is very essential to the Trader if he or she wants to make consistent results in the long run career-wise. Also, the Trader needs to understand that price does not work in isolation and that traders often need each other in order to move price in a certain direction.
Another insight that working with the XMA Indicator for Meta Trader 4 can give a trader is that the indicator itself can be combined very efficiently with other teasing systems especially when these trading systems can show a trader the general market trend. This is very important because the XMA Indicator for Meta Trader 4 is not very strong at determining market direction and often needs the trader to confirm it with another trend indicator or with a price action like when the price is breaking out of a range or a channel, etc. The point is that the trader must find another indicator to confirm the price with before he or she takes to trade in the direction that the indicator is pointing the trader to.
Also, traders who like clean charts will greatly benefit from using this indicator as it prints its signals out in a clean chart so that the trader is not easily distracted by the colors or text boxes created. Some indicators can actually clog a trader's workspace or chart real-estate and most of the time traders find it to be very annoying as the trader would need some space to be able to do their own technical analysis of the trading environment. Once such a trader's chart is clogged by the indicator, he or she would either have to take it off entirely or look for another screen to work with and this might be a very serious challenge for a lot of traders.
Hence, the fact that the indicator offers the trader a rather clean chart interface is a very big plus on the part of such traders who would not compromise their screen real-estate for any indicators that might obstruct their view of price action as this would leave such traders perfectly unsettled during their trading day and since being unsettled doesn't do a trader any good, this can adversely affect how a trader works during their trading day and how their performance eventually looks like.
Lastly, a trader would need to apply proper risk management to their trades as without this a trader isn't trading and is merely gambling in the markets. Trading involves the risk that a trader can effectively manage if that trader understands that at the very basics, no single trade can make a trader super rich and hence a trader must ensure that all of his trades have a certain amount that is allocated to them. Certain professional traders go as low as o. 5% per trade and take trading very slowly as it is indeed a very long term career and should be treated as such.
