The Triangular Moving Average, otherwise known as TMA, is an optimized version of the moving average indicator for the MetaTrader 5 platform. This technical indicator smoothed the price of an asset, making it responsive in identifying trend reversals more effectively.
Unlike the traditional moving average, the TMA indicator is very responsive, lags less behind the price, and filters market noise. Therefore, it accurately identifies trend reversal and direction of the market compared to the moving regular average.
Features of the TMA Indicator for MT5
The TMA indicator is a multi-timeframe tool displayed as a line on the price chart, enabling traders to identify the trends and trading opportunities across multiple time frames. It depicts a bullish trend when the price of an instrument crosses above the line, indicating a potential buying opportunity.
Conversely, a bearish trend is when the price closes below the TMA line, which suggests a potential selling opportunity. Furthermore, the indicator allows users to customize the parameters to their trading styles and preferences. For instance, traders can adjust the indicator’s period to suit their strategies.
Benefits of Using the Indicator
- Accurate Trend Identification: The indicator is responsive to price changes and filters noise, which enables traders to identify market trends accurately.
- Beginner-Friendly: The TMA indicator depicts bullish and bearish sentiment when the price is above/below the line, making it easy for even a beginner to interpret the market trend at a glance.
- Trade Confluence: The indicator can be used as a confirmation tool with price action/other technical indicators to make objective trading decisions like entries or exits.
Indicator Settings Description
The indicator comes with the following customizable settings:
Periods: Defines the period of the moving average for trend analysis.
Apply To: Determines the price data used for calculation.