Technical capabilities of the MetaTrader 4 (MT4) terminal allow you to impose a moving average on any other indicator in the terminal.
In the picture above you see how a simple moving average with a period of 21 (red line) is applied to the standard RSI indicator with a period of 14 (blue line). How to do it yourself?
This is nothing complicated. First, you need to use standard methods to set the indicator you need on the currency pair chart to which you want to set the moving average.
Then, in the MT4 “Navigator” terminal menu, select the moving average indicator and use the Drag and Drop technology to drag it onto the indicator window. In my example, this is a standard RSI indicator. But you can superimpose the average on other indicators, depending on your need.
After that, in the “Moving Average” window in the “Apply to” tab, select the “Previous Indicator Data” parameter. See the illustration below.
A moving average will be applied to the indicator and we will get the signal line of the RSI indicator.
If you select the “First Indicator Data” parameter in the menu, the average will be based on the data of the very first indicator, which is not necessarily the indicator you need (if you have other indicators on the chart).
For our example, you can choose any parameter, since we have only one indicator – it is the first and previous.
Accordingly, you can adjust any standard parameters of the moving average applied to your indicator, including period, color, thickness, etc. And also in the “Display” tab, you can change the average display mode on various timeframes.
Applying a Moving Average to another indicator allows you to smooth out its readings and get more reliable and high-quality signals.
How to display the moving average from one timeframe on all other periods of your chart in the MT4 terminal, read the article – “Forex indicators: 3 moving averages for all timeframes“.
I hope this article will help you use all the features of your MT4 trading terminal to build your own trading system.
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