Set the Moving Average to another indicator in MT4
Not all traders know that indicators can be applied not only to the price chart, but also to other indicators . For example, it is possible to average not only the price value, but also the indicators of the indicator built on the price history. This helps to reduce the number of false signals.
Most often a moving average (Moving Average) is applied to other indicators. This is done to smooth out indicator readings for a more reliable signal. Applying MA to other indicators is quite common, but not everyone knows how to do it correctly.
How to set the Moving Average to another indicator in MetaTrader 4?
So to install the MA indicator we must call the navigator with indicators: View menu > Navigator or press CTRL+N.
With the mouse we start by moving the indicator to which we are going to impose the Moving Average on the price chart. For example we will take MACD, although it can be any indicator RSI, CCI, Volumes, etc.
Then we find the Moving Average indicator in the Navigator list and move it with the mouse to the window with MACD indicator. In the properties window that opens, choose a value from the "Apply to" list: Previous Indicator's Data (apply to the data of the previous indicator) or the value First Indicator's Data (apply to the data of the first indicator) - in this case there is no difference, because the previous indicator is the very first. That's the whole secret. In this example, the green line is the MA indicator.
Let's average
We will go further and try to average the average line Moving Average. We already know how to do this. So what we got:
- At the top of the picture there is a MA indicator applied to the price (white line).
- Smoothed average from the white MA, the Previous Indicator's Data value is applied (blue line). Double smoothing from the price.
– Blue Line - double smoothed value from the white MA, single smoothing from the blue one. The Previous Indicator's Data value has been applied, i.e. to the blue MA. Triple smoothing of the price.
Try it yourself!