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MAMA MT4 Indicator – Moving Average on Moving Average for double confirmation 

 July 16, 2016

By  Advanced Strategies

The MAMA MT4 indicator is a technical indicator based on a combination of three moving averages. Unlike the traditional moving averages the MAMA MT4 indicator uses an adaptive moving average (AMA) that has the advantage of incorporating in its measurement the volatility factor. This is one of the reasons why the adaptive moving average is superior to the simple moving averages because not only that you’ll get a better picture of the overall trend but at the same time you’ll get far less false signals.

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The adaptive moving averages MAMA indicator was first introduced to the general public by John Ehlers in his book “Cybernetic Analysis for Stocks and Futures.” This was one of the first indicators to address the increased volatility in the markets and adapt the moving averages to this “shifts in the technical character in the market.”

MAMA MT4 Indicator - Moving Average on Moving Average Indicator
MAMA MT4 Indicator – Moving Average on Moving Average Indicator

By using as a filter the volatility factor you’ll get a moving average that is plotted on the chart further from the current market price which is useful in eliminating the false breakouts during the high volatility periods. In this regard the MAMA MT4 indicator (see Figure 1) will enable your profits to run and will allow you to detect when the current trend will reverse because the adaptive moving averages will converge once the trend loses momentum.

MAMA MT4 Indicator Strategy and Trading Rules

The MAMA MT4 indicator can be used as a standalone strategy as it can generate very accurate buy and sell signals no matter of the time frame used. However, the preferred time frame is the 15-minute TF since we prefer to use it as a scalping strategy. Without further ado, these are the buy/sell signal rules of the MAMA strategy:

  • Buy Signal: After the fast moving average – the 13 period blue line – crosses above the yellow (34 period) and red (89 period) moving averages. Place your stop loss 15 pips below the yellow line and take profit once the blue line crosses below the red line.
  • Sell Signal: After the fast moving average – the 13 period blue line – crosses below the yellow (34 period) and red (89 period) moving averages. Place your stop loss 15 pips above the yellow line and take profit once the blue line crosses above the red line.
MAMA MT4 Indicator Strategy and Trading Rules
MAMA MT4 Indicator Strategy and Trading Rules

Recommended Time Frames for the MAMA MT4 Indicator 

Technically speaking, you can use this MT4 indicator for all time frames. However, the shorter the time frame, you will see more fluctuation and possibly more whipsaw which may cause small losses that can eat up your portfolio quickly. We recommend that you use higher time frames like the 4H for better consistency.


MAMA MT4 Indicator Download

We have provided this powerful trend trading indicator to you at no cost. We humbly request for your help to spread the word by sharing on one of the social platforms below. To unlock the download link, you just need to share this page to help us achieve our goal of helping more traders out there.

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Leave us a comment below to let us know your thoughts on this indicator. If you like this indicator, you might like see other indicators that we have carefully selected that will help you in your trading journey.

And if you can, you really should invest in a proven MT4 Expert Advisor to help you generate some profit on full autopilot. We highly recommend this powerful MT4 Expert Advisor.

Visit our Free MT4 Indicator Download page. We hope you have enjoyed this post as much as we have creating it. Good luck and thank you for your readership.


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