The Adaptive Moving Average (AMA) Forex indicator for Metatrader 5 is an advanced moving average that reduces the number of whipsaw signals.
This moving average type predicts future trends better and limits the number of “losing” whipsaw signals.
The most commonly used periods for the AMA: 200-day, 50-day, 20-day, 8-day and 5-day.
How to interpret this indicator?
- The price is bullish when the AMA’s slope is rising.
- The price is bearish when the AMA’s slope is falling.
The following indicator inputs and parameters can be modified: period (14), fast end period, slow end period, and price.
The Adaptive Moving Average indicator works for any trading instrument that can be loaded in the Metatrader 5 platform.
First, familiarize yourself with this technical indicator and test it on a demo account.
It supports all time frames and Forex pairs.
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Chart Example
The following chart shows how the AMA Forex indicator looks when applied to the MT5 chart.
How To Buy And Sell Forex Pairs With The Adaptive Moving Average (AMA) Indicator?
Find a simple trading example below:
Buy Signal
- A buy signal occurs when the green colored AMA line is displayed on the price chart.
- Open a buy trade and place your stop loss 3 pips below the most recent support zone.
- Close the buy trade for a reward to risk ratio of at least 1.5, or wait for the red Adaptive Moving Average line to appear on the chart.
Sell Signal
- A sell signal occurs when the red colored AMA line is displayed on the price chart.
- Open a sell trade and place your stop loss 3 pips above the most recent resistance zone.
- Close the sell trade for a reward to risk ratio of at least 1.5, or wait for the green Adaptive Moving Average line to appear on the chart.
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Frequently Asked Questions
How Do I Install This Custom Indicator On Metatrader 5?
- Open the MT5 trading platform
- Click on the File menu button located at the top left part of the platform
- Click on Open Data Folder > MQL5 folder > Indicators
- Copy the AMA (ds).mq5 indicator file in the Indicators folder
- Close and restart the trading platform
- You will find the indicator here (Navigator window > Indicators)
- Drag the indicator to the chart to get started with it!
How Do I Edit This Indicator?
- Click in the open chart with your right mouse button
- In the dropdown menu, click on Indicator List
- Select the indicator and click on properties
- Now you can edit the inputs, colors, levels, scale and visualization
- Finally click the OK button to save the new configuration