StepMA Indicator For MT4
Table Of Contents:
- StepMA Indicator For MT4
- Parameters of the StepMA Indicator For MT4
- Some of the Advantages of Using the StepMA Indicator For MT4
- Some of the Disadvantages and Limitations of using the StepMA Indicator For MT4
The StepMA Indicator For MT4 is an Average True Range and Moving Average based indicator. The StepMA Indicator For MT4 can help a trader to identify the level of volatility in whatever currency pair or trading asset it is attached to and to set realistic stop-loss and take-profit targets for their trades.
Partially Automated Trading Besides Your Day Job
Alerts In Real-Time When Divergences Occur
Parameters of the StepMA Indicator For MT4
PeriodWATR: This parameter is used to set the sensitivity of the Average True Range to the price for the indicator.
Kwatr: This parameter lets the user set the smoothing quality for the indicator.
HighLow: This parameter is used to let the trader decide if to let the indicator calculate based on the highs and lows.
Some of the Advantages of Using the StepMA Indicator For MT4
An advantage that the trader can easily derive from using the StepMA Indicator For MT4 is that it can help him or her to be able to identify profitable entries in whatever market he or she is currently trading. This means that the trader would know exactly when to buy or sell since the indicator would give the trader appropriate signals at those times.
The StepMA Indicator For MT4 has two signal lines that are used to send out signals to traders. One of the signal lines is a smoothened Average True Range indicator that either climbs higher or lower depending on the present price volatility on the trader's current chart.
The second signal line is a Simple Moving Average indicator that crosses the ATR indicator in order to provide the trader with trading signals.
When the Simple Moving Average indicator in the StepMA Indicator For MT4's subwindow crosses its Average True Range Indicator from below, a new buy signal is generated on the trader's currency pair.
Also, when the Simple Moving Average indicator crosses the Average True Range's signal line from above, a new sell signal is generated on the trader's currency pair.
Another important advantage of using the StepMA Indicator For MT4 is that it can be used by the trader in order to determine trend direction on the trader's current chart. This implies that the trader who has the indicator on his or her trading charts would easily know what direction the price is headed to.
One way the trader can use the StepMA Indicator For MT4 to identify the correct direction of the trend is that he or she can attach the indicator to and watch a higher timeframe of the same currency pair or trading asset for the Simple Moving Average indicator to cross the Average True Range indicator.
If the Average True Range is crossed from below by the Simple Moving Average indicator, a new uptrend signal is generated on that currency pair and if the Average True Range indicator is crossed from above by the Simple Moving Average indicator, a new downtrend signal is generated on the currency pair.
Another way the trader could use the StepMA Indicator For MT4 to determine the trend direction is by watching the slopes of the Simple Moving Average indicator in the indicator's subwindow.
When the Simple Moving Average slopes upwards on a higher timeframe chart of the same currency pair, a new uptrend signal is generated on that currency pair and if it slopes downwards on that timeframe, a new downtrend signal is generated on that currency pair.
One other important advantage of using the StepMA Indicator For MT4 is that it can help the trader to measure the momentum of the price on the trader's current timeframe. This means that the trade who has the StepMA Indicator For MT4 on his or her trading charts would be able to identify the periods of increased periods of both increased and reduced price volatility on the trader's currency pair or trading asset.
A trader needs to be aware of the amount of volatility on his or her trading charts since some strategies require the presence of volatility while other strategies require a reduced amount of volatility. Also, when there is increased price volatility on a currency pair or trading asset, it would usually require that the trader increases his or her targets in the markets in order to accommodate for the increase in the price movements.
Another advantage that the trader can derive from using the StepMA Indicator For MT4 is that he or she would be able to determine the exact size of his or her stop-loss or take profit values in any currency pair or the trading asset he or she is working on.
This is because, in order for the trader to correctly determine the correct pip size required for his or her stop-loss or take-profit, he or she needs to determine how volatile that currency pair or trading asset currently is.
The trader can use the ATR signal line on the StepMA Indicator For MT4 to determine the exact size that he or she should realistically use for their stop-loss and take-profit orders in the market. This is done by using the exact value of the ATR indicator at that exact moment before the trader puts on the trade and using this number or a multiple of this number to set the order.
Other advantages of using the StepMA Indicator For MT4 include that it does not repaint and gives out very few false signals during the trading day. The indicator does not repaint since once it creates either a buy or a sell signal, it stays that way regardless of the way that the price moves after that.
Also, the StepMA Indicator For MT4 is very slow in creating entry signals and as a result, does not give off a lot of inaccurate entry or exit signals.
Some of the Disadvantages and Limitations of using the StepMA Indicator For MT4
A disadvantage of using the StepMA Indicator For MT4 is that sometimes, it could really be late in getting the trader into a trade. This is because it waits for extra confirmation before it gives the trader entry or exit signals in order to generate fewer false signals.
Another disadvantage of using the StepMA Indicator For MT4 is that it is usually not very sensitive to the price and a result can also take a while before it tells the trader if the trade has stopped moving in his or her direction. Sometimes, this might adversely affect the trader's profits.
Also, the trader using the StepMA Indicator For MT4 should expect an initial drawdown as soon as they get into a trade using the indicator since it does not get the trader into a trade as soon as the trend starts moving.
