MA crossover indicator is an MT4 indicator that shows the bullish or bearish signs on the crossover of slow- and fast-moving averages. The moving average lines are used to identify the trend reversals in the market.
The most liked feature of this MA crossover indicator is the real-time alerts. So you don’t need to sit in front of a screen waiting for the moving average crossover. Instead, add this indicator to the MT4, and it will send an alert whenever two moving averages cross each other.
How does the Moving average crossover indicator work?
This indicator will plot two moving averages of different periods. First, MA will be a fast-moving average with period 25. The fast-moving average reacts very quickly to significant price changes in the market. Traders use the fast MA line to identify recent price reactions.
The second moving average line will act as a slow MA with a 50 Period. It reacts very slowly to price changes. Hence, this will be a smooth line and does not give false signals. But the drawback of a slow MA line is that it is a lagging indicator line.
Now, if you combine both slow- and fast-moving average lines, you will get accurate trend reversal signals.
MA buy/sell Alerts
Here are the simple criteria to open a buy or sell trade using this indicator.
When the fast-moving average line (red color line) crosses the green slow-moving average line from the lower side, a bullish crossover will happen. Then the MA crossover indicator will generate a buy alert with a green bullish arrow.
When the fast MA line crosses the slow MA line from the upper side, the indicator will generate a sell alert with a red down arrow. That shows the bearish trend reversal.
Traders widely use the moving average crossover strategy in technical analysis, but it is not perfect to open or close a trade without any other price action confluence. That’s why I will not recommend using this indicator alone for trading. However, you can use it as a confluence with your trading strategy.Download indicator