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Introduction to the Triangular Moving Average

Moving average lines are some of the most widely used technical indicators used for identifying trends, trend reversals, and dynamic support and resistance levels. However, most moving average lines have weaknesses which could either be that it is too lagging or that it moves too erratically. The TMA line was developed with the goal of having smoothened out moving average line which moves less erratically compared to other moving average lines.

What is the Triangular Moving Average Indicator?

The Triangular Moving Average (TMA) Indicator is a moving average type of technical indicator. In fact, it is quite similar to most moving averages. Where it differs is in its smoothing effect as the Triangular Moving Average was developed with the goal of having a smooth moving average line. The TMA line is double smoothed, which means that the moving average line it plots has been smoothened or averaged out a couple of times.

How the Triangular Moving Average Indicator Works?

As mentioned above, the Triangular Moving Average has a double smoothed formula, which simply means that it has been averaged out twice. It simply computes for multiple Simple Moving Average (SMA) lines, then averages out the SMAs for the past n periods.

TMA = (SMA1 + SMA2 + … + SMAn) / n

In effect, this indicator simply plots a moving average of the moving average of price.

How to use the Triangular Moving Average Indicator for MT5

Standard Triangular Moving Average (TMA) indicators have only one variable, which would be the number of periods in which the moving average would be based on. However, this version allows for a couple more options to allow users to tweak the indicator further.

“Smoothing Depth” allows users to modify the number of periods of SMAs that would be computed by the indicator.

“Horizontal shift of the indicator in bars” allows users to shift the TMA line forward or back.

“Vertical shift of the indicator in points” allows users to shift the TMA line up and down.

The TMA line can be used the same way as most moving average lines are used.

It can be used as a trend direction filter based on price action in relation to the line.

It can be used as a component of a moving average crossover pair for identifying trend reversals.

It can also be used as a dynamic support and resistance line where price can reverse from.

Buy Trade Setup

When to Enter?

Identify an uptrend market and wait for a pullback towards the TMA line. Open a buy order as soon as price action develops a bullish reversal candlestick pattern on the TMA line. Set the stop loss on the support below the entry candle.

When to Exit?

Close the trade as soon as price action shows signs of a bearish reversal.

Sell Trade Setup

When to Enter?

Identify a downtrend market and wait for a pullback towards the TMA line. Open a sell order as soon as price action develops a bearish reversal candlestick pattern on the TMA line. Set the stop loss on the resistance above the entry candle.

When to Exit?

Close the trade as soon as price action shows signs of a bullish reversal.

Conclusion

The TMA line is a smoothened out moving average line. As such, it can be a more reliable moving average line compared to other overly sensitive moving average lines. Its disadvantage on the other hand is that it could also be too lagging due to its double smoothing approach.

MT5 Indicators – Download Instructions

Triangular Moving Average for MT5 is a Metatrader 5 (MT5) indicator and the essence of this technical indicator is to transform the accumulated history data.

Triangular Moving Average for MT5 provides for an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.

Based on this information, traders can assume further price movement and adjust their strategy accordingly. Click here for MT5 Strategies

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How to install Triangular Moving Average for MT5.mq5 to your MetaTrader 5 Chart?

• Download Triangular Moving Average for MT5.mq5
• Copy Triangular Moving Average for MT5.mq5 to your Metatrader 5 Directory / experts / indicators /
• Start or restart your Metatrader 5 Client
• Select Chart and Timeframe where you want to test your mt5 indicator
• Search “Custom Indicators” in your Navigator mostly left in your Metatrader 5 Client
• Right click on Triangular Moving Average for MT5.mq5
• Attach to a chart
• Modify settings or press ok
• Indicator Triangular Moving Average for MT5.mq4 is available on your Chart

How to remove Triangular Moving Average for MT5.mq5 from your Metatrader 5 Chart?

• Select the Chart where is the Indicator running in your Metatrader 5 Client
• Right click into the Chart
• “Indicators list”
• Select the Indicator and delete

Triangular Moving Average for MT5 (Free Download)

Click here below to download:

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By: Forex Committees
Title: Triangular Moving Average for MT5
Sourced From: www.forexmt4indicators.com/triangular-moving-average-mt5-indicator/?utm_source=rss&utm_medium=rss&utm_campaign=triangular-moving-average-mt5-indicator
Published Date: Tue, 06 Sep 2022 22:32:00 +0000

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