The emas indicator for MetaTrader4 is a technical study that combines 3 Exponential Moving Averages, where their crossover is used in generating buy/sell signals within an indicator window (represented by colored histograms).
The emas indicator uses the EMAs (5, 10 and 20) in delivering its buy/sell signals. The emas indicator is an example of a triple crossover method, which involves two relatively short moving averages and on relatively long moving average.
As with all moving averages, the over-all period of the moving average outlines the system’s timeframe. The ema indicator system uses the 5-day EMA, 10-day EMA and 20-day EMA, as such we consider it short term.
If by any means you wish to transform the default emas indicator setting into a medium-term or perhaps a long-term system, then you should consider tinkering the “input” values to say 50-day EMA, 100-day EMA and 200-day EMA.
When entering the emas input values, ensure that MaPeriod1 must be smaller than MaPeriod2 and MaPeriod2 must be smaller than MaPeriod3.
The ema indicator histogram turns green if MaPeriod1 > MaPeriod2 and MaPeriod2 > MaPeriod3. Alternatively, the ema indicator histogram turns red or possibly orange when MaPeriod1 < MaPeriod2 and MaPeriod2 < MaPeriod3.
Considering the signals of the emas indicator, price is said to be bullish when the histogram turns green, while it is bearish when the ema indicator histogram turns red.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (MaPeriod1, MaPeriod2, MaPeriod3), Colors, width & Style.
Time frames: 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: pattern, trend