3DMa Indicator For MT4
The 3DMa Indicator For MT4 is an indicator which adds a new dynamic to Moving Average trading systems because it displays the Moving Averages within trending markets in three dimensional format. This takes your trading analysis to a new dimension because not only are the Moving Averages in three dimensional format but it also has a rainbow colour scheme to it that is similar to a heat map. This colour map allows you to clearly detect the market sentiment and the trend reversals as it happens; furthermore you may change the parameters like the period of the Moving Averages by using your mouse (nothing complicated about that).
Trading ideas with the 3DMa Indicator For MT4
The 3DMa Indicator For MT4 plots a several Moving Average (MA) lines forming a 3D impression. And as stated in the above section, the MA lines have different colours which give an impression of a heat map which helps you to identify when a trend is strongest.
The MA lines have different periods and the step (or difference) from one MA period to the next varies with the number of MA lines being displayed.
The most amazing thing about the 3DMa Indicator For MT4 is that you do not have to go through a lot of steps to change the number of MA lines being displayed or their periods. You can change the maximum period MA and the MA step by simply moving the cursor of your mouse around the chart.
To change the ‘Step MA’, (the difference from one MA period to the next) you just have to move the cursor up or down. As you move the cursor up the Step MA increases and as you move the cursor down the Step MA decreases.
To change the cursor from left to right the Max Period MA (which is the period of the highest MA) increases. This means that if you place the cursor to the left side, you will have a Max Period MA with a lower period while if you place the cursor to the right, you shall have a Max Period MA with the highest period.
The number of MA lines depends on the Max Period MA and the Step MA. It is the quotient of Max Period divided by Step MA. And if the since we cannot have a fraction line, in case the quotient is a fraction a full MA line is divided. For instance, if the Step MA is 50 and the Max Period MA is 110, the quotient (110/50) would be 2.2. Therefore, the three lines are plotted. But if the Max Period was 100, the quotient (100/50) would be 2 and only tw0 lines would have been plotted.
The above screenshot shows how the 3DMa Indicator For MT4 appears when the cursor is moved down to the bottom of the chart. You can see that the number of MA lines has greatly reduced and the Step MA has also increased from 1 to 50. The cursor has also been moved to the left side and that is why the Max Period MA has also reduced to 110.
You can also see that the number of MA lines has reduced to only three.
Interpreting the 3DMa Indicator For MT4
The 3DMa Indicator For MT4 may seem quite complex especially due to the different colours and many lines. However, all those lines are moving averages and the indicator should therefore be interpreted the same way the standard Moving Average is interpreted with the only difference being the different colour.
Normally, a moving average indicator line shows the average of price changes over a specific period. When the line moves above the candlesticks, it is a signal that a bearish trend is imminent. And on the other hand, when the line moves below the candlesticks it is a signal that a bullish trend is imminent.
Also, the period of the Moving Average indicator determines how responsive it becomes to the market price changes. A moving average with a large period will be less responsive to small market price changed compared to a moving average with a smaller period. That is why for the 3DMa Indicator For MT4 some lines seem very responsive to slight market price movements while others seem to be almost straight (less responsive to market price movements).
But the logic is the same as that of the standard moving average. When the moving average lines go below the candlesticks, it is a signal that a bullish trend will start and when the moving average lines go above the candlesticks, it is a sign that a bearish trend will start.
3DMa Indicator For MT4 - Buy Entries
The first thing that you should look at for you to confirm a BUY entry using the 3DMa Indicator For MT4 is whether the blue coloured lines are below the candlesticks. It is, however, important to note that this can only be achieved when the cursor is moved to the top right corner to display the maximum amount of MA lines.
Secondly, the top band should be Aqua in colour.
3DMa Indicator For MT4 - Sell Entries
The first thing that you should look at for you to confirm a SELL entry using the 3DMa Indicator For MT4 is whether the blue coloured lines are above the candlesticks. It is, however, important to note that this can only be achieved when the cursor is moved to the top right corner to display the maximum amount of MA lines.
Secondly, the top band should be red/yellow in colour.
3DMa Indicator For MT4 - Conclusion
3DMa Indicator For MT4 is an exciting MT4 indicator to use. It does not require a lot of market analysis to determine the type of trade to place but rather just identifying whether the blue lines are above or below the candlesticks and which colour band is at the top.
A red band at the top shows strong bear power while an aqua band at the top shows a strong bull power.
To effectively use the 3DMa Indicator For MT4, you should ensure that the Step MA is 1 and the Max Period MA is above 1000 at least.