How to Use Moving Averages in MT4: Step-by-Step Guide
Learn how to add and use moving averages in MetaTrader 4. From understanding SMA and EMA differences to implementing golden cross strategies.
What Are Moving Averages?
Moving averages (MA) are technical indicators that smooth out price data by calculating the average price over a specific period. They help identify trend direction and filter out market noise. The two most common types are:
SMA (Simple Moving Average)
Calculates the average of closing prices over the selected period. Gives equal weight to all prices.
EMA (Exponential Moving Average)
Gives more weight to recent prices. Responds faster to price changes than SMA.
Step 1: Adding Moving Average to Your Chart
Open MetaTrader 4 and select a chart
Choose your currency pair (e.g., EUR/USD) and timeframe
Insert → Indicators → Trend
Or click the Indicators button on the toolbar
Select "Moving Average"
The indicator settings window will open
Pro Tip: You can add multiple moving averages with different periods to identify crossovers.
Perfect for Beginners: Practice Risk-Free
Practice with real market data on MT4 demo account
Step 2: Configure Your Settings
Recommended Settings
Period (Most Important)
- • 20 Period: Short-term trends (scalping/day trading)
- • 50 Period: Medium-term trends (swing trading)
- • 200 Period: Long-term trends (position trading)
Beginners should start with 50
Method
- • Simple: SMA - Smoother, less responsive
- • Exponential: EMA - Faster, more reactive
Use EMA for quicker signals, SMA for stability
Quick Setup: Period 50, Method Exponential, Color Blue. Click OK to apply.
Step 3: Reading Moving Average Signals
Bullish Signals (Buy)
- • Price breaks above the moving average
- • Price stays above the MA line
- • Uptrend confirmed - consider buying
Bearish Signals (Sell)
- • Price breaks below the moving average
- • Price stays below the MA line
- • Downtrend confirmed - consider selling
Master Moving Averages? Start Trading Live
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Common Mistakes to Avoid
Trading Against the Trend
Don't buy when price is below the MA. Wait for confirmation when price breaks above.
Using Wrong Periods
200 MA is too slow for scalping. Use 20 period for short-term trades.
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