TMA Trace MTF Indicator represents a combination of the Average True Range (ATR) and the Moving Average (MA). This indicator is very much effective in defining the market trends plus the dynamic support or resistance levels of the market. Newbie traders find this indicator as an ideal one to start because of its simplicity of use.
TMA Trace MTF Indicator supports all sorts of time frame charts within the Metatrader 4 trading platform. Furthermore, this indicator is quite suitable to apply on any kids of the forex currency pair chart.
Once you’re done with the installation of TMA Trace MTF Indicator at the MT4 terminal, your chart will appear like the image below
TMA Trace MTF Indicator: Interpretation
- Upper Band: It works as the dynamic resistance of the market. Price fails to move above its level while testing it as resistance indicates for a possible bearish move of the market. These levels help you to determine the stop-loss budget during the short trades.
- Signal Line: Signal line works to identify the market trend following a simple rule like Moving Averages. Price moves above the level is considered as the signal for the bullish trend. On the other hand, price holding its position below the Signal line level is a confirmation for the bearish trend of the market.
- Lower Band: This band is treated as the dynamic support of the market. Price hits its level and fails to move further down represents the potential of a new bullish trend. If you are in a long trade, you can use these levels as your stop loss positions.
TMA Trace: Buy Rules
- Price is rejected to go further down from the lower band
- A bullish price candle closes right above the signal line
- Buy triggers when the above conditions are met
- Set stop loss below the lower band area
- Exit long/take profit whenever price turns back inside the upper band level
TMA Trace: Sell Rules
- Price is rejected to go further up from the upper band
- A bearish price candle closes right below the signal line
- Sell triggers when the above conditions are met
- Set stop loss above the upper band area
- Exit short/take profit whenever price turns back inside the lower band level
[button-red url=”http://www.forexadmin.com/wp-content/uploads/2019/08/tma-trace-mtf-indicator.zip” target=”_blank” position=”center”]Free Download TMA Trace MTF Indicator[/button-red]