Introduction to the TMA Slope Alerts Indicator
Most basic oscillators are based on an underlying moving average line or any of its derivatives. Different underlying moving average lines produce oscillators with different characteristics.
The TMA Slope Alerts Indicator has a characteristically smooth oscillator which identifies momentum and trend reversals.
What is the TMA Slope Alerts Indicator?
The TMA Slope Alerts Indicator is an oscillator type of technical indicator based on the Triangulated Moving Average (TMA).
This indicator plots histogram bars which oscillate around a midline, which is zero. Positive bars indicate a bullish trend, while negative bars indicate a bearish trend.
This indicator also plots dots to indicate the direction of the short-term momentum. Blue dots indicate a bullish momentum, while red dots indicate a bearish momentum.
It also provides signal alerts based on momentum reversal signals, and also allows for push notifications sent to an E-mail.
How the TMA Slope Alerts Indicator Works?
This indicator uses two underlying TMA lines to compute for its histogram bars. It then calculates for the difference between the faster TMA line and the slower TMA line. The result is then plotted as histogram bars on the indicator window.
The indicator then compares the value between bars. It plots a blue dot on the bar whenever the value of the current bar is higher than the preceding bar, and a red dot whenever the value of the current bar is lower than the preceding bar.
How to use the TMA Slope Alerts Indicator for MT4
This indicator has two variables which pertain to the period used for the faster TMA line and the slower TMA line, which are the “Fast TMA” and “Slow TMA” variables. This can be used to tweak the sensitivity of the indicator.
It also has a “TMA Price” variable, which allows the traders to modify the price point used by the indicator. It is currently preset as the Typical Price.
The other options pertain to the alert system of the indicator.
This indicator can be used as a reversal signal indicator based on the changing of the color of the dots or the crossing of the bars over or below zero. The changing of the color of the dots would be the signal with less lag, but it is best used in confluence with price action and other technical analysis techniques.
Buy Trade Setup
When to Enter?
Identify a bullish trade setup with a potential for a bullish trend reversal. Open a buy order as soon as the indicator plots a blue dot. Set the stop loss on the support below the entry candle.
When to Exit?
Close the trade as soon as price action shows signs of a bearish reversal.
Sell Trade Setup
When to Enter?
Identify a bearish trade setup with a potential for a bearish trend reversal. Open a sell order as soon as the indicator plots a red dot. Set the stop loss on the resistance above the entry candle.
When to Exit?
Close the trade as soon as price action shows signs of a bullish reversal.
The TMA Slope Alerts Indicator does tend to plot a lagging oscillator. This is due to the fact that a TMA line was developed to smoothen out a moving average line. However, this can be remedied by modifying the number of periods used by the TMA lines.
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