The TMA, or Triangle Moving Average is a simple indicator for MT4. It draws only one moving average line from the chart.
The indicator shows the direction of the trend and follows the price movement. If the TMA is below the price, it indicates an uptrend. Conversely, if the indicator is above price, it indicates a downward trend.
Think of the Triangle Moving Average indicator as a normal moving average. For more accurate information, you can use any indicator that is compatible with the TMA.
Due to its unique structure, the indicator is known as a triangle. To indicate the direction of the trend, it forms a triangle structure that looks like a wave.
How you can trade the TMA indicator
The TMA functions similarly to a traditional moving indicator, which is why it is important to use it as a trend following indicator. Trend following indicators can provide precise buy and sell points.
As we have already mentioned, the indicator tracks the price trend. If the TMA is above the price, it means the indicator is up and you should enter long.
The other side of the coin is that when the price falls below the triangle moving average, it signals a downtrend and you should enter to go short.
Buying strategies for the Triangle Moving Average indicator
The TMA indicator should not move above the price action.
Wait for the price of the TMA to reach full value from below.
When the price rises above the indicator, you can enter the trade.
Set a stop loss at the lowest point of the buy price.
When the TMA is reached, exit the trade.
Selling strategies for the Triangular Moving Average indicator
The TMA indicator should be at the top of the price action.
Wait for the price of the TMA to reach its maximum.
When the price falls below the indicator, you can enter the trade.
Set a stop loss at the highest of the sell points.
Exit the trade when the price rises above the triangular moving average.
The Triangle Moving Average is a vital indicator for trend traders. It tells you the direction of the trend.
The TMA indicator is trend-following and can be used at any time. The indicator can be combined with other types of technical analysis such as chart patterns or oscillators such as stochastics and RSI.