Absolutely No Lag LWMA Indicator
MT4Also Available for MT5The best Absolutely No Lag LWMA moving average indicator for identifying correct market trends on MTF MT4 charts. Determine potential forex & stock buy/sell signals.
Description
The Absolutely No Lag LWMA is the most straightforward MT4 trend indicator you may have ever experienced. It only applies a 14-period Linear Weighted Moving Average (LWMA) that identifies accurate trends and buy/sell signals for forex and stock traders.
While backtesting the Absolutely No Lag LWMA, we found the indicator suitable for all timeframes and MTF chart analysis. Also, you can apply it to perform the trend analysis on any tradable assets available within the Metatrader 4 platform.
This guide briefly explains how this indicator identifies solid trend signals, including chart examples and MT4 settings.
How to determine forex and stock buy-sell signals by using the Absolutely No Lag LWMA in MT4
Indicator slope on the main chart showing the current least square moving average value. We anticipate the trend conditions based on how the price reacts around the LWMA line.
You’ll find LWMA value is constantly increasing during an uptrend market, with the price of candles closing above the indicator level. Conversely, the price candle closing below the LWMA line signals a bearish trend. It also points to the market trend’s dynamic support/resistance position, helping traders set the stop loss zones.
According to the above example, we’ve decided to trigger a sell entry after the price rejects a major resistance and eventually moves below the LWMA line. We can set the SL above the current indicator level or the immediate resistance. Also, we can close a sell order once the price repeatedly starts closing above the LWMA line.
Conclusion
The Absolutely No Lag LWMA is an ideal MT4 indicator for novice trend-following traders for its simple demonstration of trend signals. It provides an idea of the dynamic trendline position and helps anticipate potential trade-exit zones. Moreover, it works even better when combined with support/resistance and historic price channels.
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