As a forex trader, mastering the technical aspect of the craft can be tricky. Utilizing technical indicators to maximize returns is a tried and true method among experienced traders. One of the most powerful tools to have in your trader’s toolkit is the 20 day exponential moving average (EMA) crossover of the 50 day simple moving average (SMA). This indicator can be used to identify key breakpoints for entries and exits, with the potential to increase profits and minimize risk. The purpose of this article is to discuss the source code for a Metatrader 4 expert advisor (EA) based on 20 day EMA crossover of 50 day SMA in the forex market. //————//
//This is a MQL4 EA for the MT4 platform that will open trades when the 20 day exponential moving average (EMA)
crosses the 50 day simple moving average (SMA).
//This EA will only open trades when the moving averages cross.
//Variables for the EA
extern int movingAveragePeriod1 = 20;
extern int movingAveragePeriod2 = 50;
extern double Stop Loss = 50;
extern double Take Profit = 100;
//Here we define the expert advisor’s main logic
int start()
{
//Define the timeframe to use
ResetLastError();
int timeframe = PERIOD_H1;
//Get a handle for the moving averages
int maHandle1 = iMA(NULL, timeframe, movingAveragePeriod1, 0, MODE_EMA, PRICE_CLOSE);
int maHandle2 = iMA(NULL, timeframe, movingAveragePeriod2, 0, MODE_SMA, PRICE_CLOSE);
//Declare some variable for the EA
double ma1 = 0;
double ma2 = 0;
bool buySignal = False;
bool sellSignal = False;
//Now get the moving average values
ma1 = iMA(NULL, timeframe, movingAveragePeriod1, 0, MODE_EMA, PRICE_CLOSE, maHandle1);
ma2 = iMA(NULL, timeframe, movingAveragePeriod2, 0, MODE_SMA, PRICE_CLOSE, maHandle2);
//Now we check the moving averages against each other
if(ma1 > ma2)
{
buySignal = true;
}
if (ma1 < ma2) { sellSignal = true; }//Once a signals has been triggered, it will open position //in the desired direction, with the preset Stop Loss and //Take Profit levels if (buySignal == true) { OrderSend(Symbol(), OP_BUY, 0.1, Bid, 3, Stop Loss, Take Profit, "EA Triggered Entry", 0, Blue); }if (sellSignal == true) { OrderSend(Symbol(), OP_SELL, 0.1, Ask, 3, Stop Loss, Take Profit, "EA Triggered Entry", 0, Red); }//Finally, we return that all is ok return(0); }
