Add moving average to chart

EA, indicators & objects (PC)

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In MetaTrader 4 (MT4) and MetaTrader 5 (MT5), you can display the Moving Average (MA), one of the most commonly used technical indicators. There are several types of MAs, including the Simple Moving Average (SMA), as wel as the Exponential Moving Average (EMA), which places more emphasis on recent prices.

Here we will look at how to add MA to charts on MT4/MT5.

Switch between MT4/MT5 tabs to check the steps for each.

Step 1

You can add MA from the menu and the Navigator.

Add MA from the menu

Click "Insert" in the menu. Hover the pointer over "Indicators" > "Trend" and select "Moving Average".

Add MA from the Navigator

On the Navigator, click on the "+" sign next to "Indicators" and then "Trend". Select "Moving Average" and drag it onto the chart you wish to apply it to.

Drag the Moving Average from the Navigator onto the chart

Or, right-click on "Moving Average" and select "Attach to a chart".

Right-click on Moving Average in the Navigator

Step 2

The setting window for MA will appear. Set the parameters in the "Parameters", "Levels", and "Visualization" tab and click "OK".

"Parameters" tab

Number	Item name	Descriptions
1	Period	Set the period for the MA. The unit here is the number of candlesticks. If you select the daily chart and set it to "20", the MA for the past 20 days will be generated.
2	Shift	You can shift the placement of the MA to the left or right. The unit is the number of candles. Type a positive value to move it to the right, and a negative value to move it to the left.
3	MA method	Select the type of moving average to display. Simple: simple moving average (SMA) Exponential: exponential moving average (EMA) Smoothed: smoothed moving average (SMMA) Linear Weighted: linear weighted moving average (LWMA)
4	Apply to	Price to use for calculating MA. Close: close price Open: open price High: high price Low: low price Median Price (HL/2): (high price + low price) ÷2 Typical Price (HLC/3): (high price + low price + close price) ÷3 Weighted Close (HLCC/4): (high price + low price + close price×2) ÷4 Previous Indicator's Data: the value of the indicator displayed last First Indicator's Data: the value of the indicator displayed first
5	Style	Set the color, line type, and line thickness for MA.

"Apply to" field options

Among the options in the "Apply to" field, "Previous Indicator's Data" and "First Indicator's Data" use the values of an indicator displayed in a sub-window, rather than the price of the chart's symbol.

For example, if volume is shown as the first indicator in a sub-window and you select First Indicator's Data, the MA will be calculated based on the volume.

On MT4, these options remain visible even when not available, but if selected in such cases, they will automatically default to Close.

Popularized by Granville

Granville, famous for "Granville's Law," categorized the correlations between price movements and the 200-day MA into 8 different patterns. This approach, which popularized the use of the 200-day MA on daily charts, laid the foundation for the widespread use of moving averages.

"Levels" tab

Go to the "Levels" tab and click "Add". Enter a positive number (unit: points) to show a new MA on top, and a negative number to show a new MA on the bottom of the current MA.

"Visualization" tab

On the "Visualization" tab, you can show/hide MA in the Data Window and specify the timeframes to use MA with.

Step 3

MA will be displayed on the chart.

Golden cross and death cross

MA is classified into short/medium/long term and they're often used together. When the short-term MA crosses the long-term MA from the bottom up, it's called the "golden cross" which indicates a bull market. And when the short-term MA crosses the long-term MA from top to bottom, it's referred to as the "death cross", which indicates a bear market.