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: 2022.07.19
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Add moving average to chart
Add moving average to chart
On MetaTrader4 (MT4) / MetaTrader5 (MT5), you can display Moving Average (MA). MA is one of the most frequently used technical analysis methods. The MA shows a line graph of the average price during a certain period (usually the close price is used) and is used to determine trends. There are several types of MAs including the Simple Moving Average (SMA) as well as the Exponential Moving Average (EMA), which is used when you want to focus on the most recent price.
Here we will look at how to add MA to charts on MT4/MT5.
Switch between MT4/MT5 tabs to check the steps for each.
Step 1
You can add MA from the menu and the Navigator.
Add MA from the menu
Click "Insert" in the menu. Hover the pointer over "Indicators" > "Trend" and select "Moving Average".
Add MA from the Navigator
On the Navigator, click on the "+" sign next to "Indicators" and then "Trend". Select "Moving Average" and drag it onto the chart you wish to apply it to.
Or, right-click on "Moving Average" and select "Attach to a chart".
Step 2
The setting window for MA will appear. Set the parameters in the "Parameters", "Levels", and "Visualization" tab and click "OK".
"Parameters" tab
|
Number |
Item name |
Descriptions |
|---|---|---|
|
1 |
Period |
Set the period for the MA. The unit here is the number of candlesticks. If you select the daily chart and set it to "20", the MA for the past 20 days will be generated. |
|
2 |
Shift |
You can shift the placement of the MA to the left or right. The unit is the number of candles. Type a positive value to move it to the right, and a negative value to move it to the left. |
|
3 |
MA method |
Select the type of moving average to display. Simple: simple moving average (SMA) Exponential: exponential moving average (EMA) Smoothed: smoothed moving average (SMMA) Linear Weighted: linear weighted moving average (LWMA) |
|
4 |
Apply to |
Price to use for calculating MA. Close: close price Open: open price High: high price Low: low price Median Price (HL/2): (high price + low price) ÷2 Typical Price (HLC/3): (high price + low price + close price) ÷3 Weighted Close (HLCC/4): (high price + low price + close price×2) ÷4 Previous Indicator's Data: the price data applied to the previous indicator First Indicator's Data: the price data applied to the first indicator |
|
5 |
Style |
Set the color, line type, and line thickness for MA. |
Popularized by Granville
One of the factors that made MA a widely used concept was "Granville's Law". Granville used the MA for 200 days and grouped the data into 8 different patterns. This is where the idea of the 200-Day MA comes from. To plot the 200-day MA line, set the period to "200" for a 1-day chart. When using other timeframes, adjust the period accordingly.
"Levels" tab
Go to the "Levels" tab and click "Add". Enter a positive number (unit: points) to show a new MA on top, and a negative number to show a new MA on the bottom of the current MA.
"Visualization" tab
On the "Visualization" tab, you can show/hide MA in the Data Window and specify the timeframes to use MA with.
Step 3
MA will be displayed on the chart.
Golden cross and death cross
MA is classified into short/medium/long term and they're often used together. When the short-term MA crosses the long-term MA from the bottom up, it's called the "golden cross" which indicates a bull market. And when the short-term MA crosses the long-term MA from top to bottom, it's referred to as the "death cross", which indicates a bear market.
Step 1
You can add MA from the menu and the Navigator.
Add MA from the menu
Click "Insert" in the menu. Hover the pointer over "Indicators" > "Trend" and select "Moving Average".
Add MA from the Navigator
On the Navigator, go to "Indicators" and click on the "+" sign next to "Trend". Select "Moving Average" and drag it onto the chart you wish to apply it to.
Or, right-click on "Moving Average" and select "Attach to Chart".
Step 2
The setting window for MA will appear. Set the parameters in the "Parameters", "Levels", and "Visualization" tab and click "OK".
"Parameters" tab
|
Number |
Item name |
Descriptions |
|---|---|---|
|
1 |
Period |
Set the period for the MA. The unit here is the number of candlesticks. If you select the daily chart and set it to "20", the MA for the past 20 days will be generated. |
|
2 |
Shift |
You can shift the placement of the MA to the left or right. The unit is the number of candles. Type a positive value to move it to the right, and a negative value to move it to the left. |
|
3 |
Method |
Select the type of moving average to display. Simple: simple moving average (SMA) Exponential: exponential moving average (EMA) Smoothed: smoothed moving average (SMMA) Linear Weighted: linear weighted moving average (LWMA) |
|
4 |
Apply to |
Price to use for calculating MA. Close: close price Open: open price High: high price Low: low price Median Price (HL/2): (high price + low price) ÷2 Typical Price (HLC/3): (high price + low price + close price) ÷3 Weighted Close (HLCC/4): (high price + low price + close price×2) ÷4 Previous indicator's data: the price data applied to the previous indicator First indicator's data: the price data applied to the first indicator |
|
5 |
Style |
Set the color, line type, and line thickness for MA. |
Popularized by Granville
One of the factors that made MA a widely used concept was "Granville's Law". Granville used the MA for 200 days and grouped the data into 8 different patterns. This is where the idea of the 200-Day MA comes from. To plot the 200-day MA line, set the period to "200" for a 1-day chart. When using other timeframes, adjust the period accordingly.
"Levels" tab
Go to the "Levels" tab and click "Add". Enter a positive number (unit: points) to show a new MA on top, and a negative number to show a new MA on the bottom of the current MA.
"Visualization" tab
On the "Visualization" tab, you can show/hide MA in the Data Window and specify the timeframes to use MA with.
Step 3
MA will be displayed on the chart.
Golden cross and death cross
MA is classified into short/medium/long term and they're often used together. When the short-term MA crosses the long-term MA from the bottom up, it's called the "golden cross" which indicates a bull market. And when the short-term MA crosses the long-term MA from top to bottom, it's referred to as the "death cross", which indicates a bear market.
Last updated
: 2024.01.09
Nakamaru is a manual production consultant at FINTECS, a company that specializes in creating manuals for their clients.
With a wide range of experience from fintech to entertainment, he presents what user-friendly manuals should be like.
He works with numerous large corporations as an external manual production project manager.
【Business information】
http://www.fintecs.co.jp/profile/
Supervisor
Akira Takagi
Systems engineer, MetaTrader administrator
After graduating from Computer Science at the Uninove, Brazil, in 2014, he has worked on various systems development projects.
He participated as a developer in the launch of forex services in 2019. Since then, he has also been involved in the development of MetaTrader plugins and APIs. He is certified by MetaQuotes as a MetaTrader5 Administrator and active in consulting and advisory as well.
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