Add moving average to chart

PC Add moving average to chart

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On MetaTrader4 (MT4) / MetaTrader5 (MT5), you can display Moving Average (MA). MA is one of the most frequently used technical analysis methods. The MA shows a line graph of the average price during a certain period (usually the close price is used) and is used to determine trends. There are several types of MAs including the Simple Moving Average (SMA) as well as the Exponential Moving Average (EMA), which is used when you want to focus on the most recent price.

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 price data applied to the previous indicator First Indicator's Data: the price data applied to the first indicator
5	Style	Set the color, line type, and line thickness for MA.

Popularized by Granville

One of the factors that made MA a widely used concept was "Granville's Law". Granville used the MA for 200 days and grouped the data into 8 different patterns. This is where the idea of the 200-Day MA comes from. To plot the 200-day MA line, set the period to "200" for a 1-day chart. When using other timeframes, adjust the period accordingly.

"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.