TMA centred bands indicator Guideline

TMA centred bands indicator for MT4 is a non-repainting indicator in Metatrader 4. It depends on the moving average (MA). The name TMA comes from the Triangular Moving Average because the indicator draws a triangle band. However, the TMA centred bands indicator MT5 differs from the other channel indicators such as bollinger band because it does not take into account simple moving averages (SMA) while it uses doubly smooth ones. This helps to evaluate market fluctuations more clearly but affects the sensitivity of the indicator and makes it less sensitive. In this course, we will examine the TMA centred bands indicator for Tradingview and MetaTrader platforms.

TMA centred bands Guide

 What is TMA centred bands indicator ?

TMA centred bands indicator is a reversal trading system that can be used for intraday scalping and swing trading. However, the trading system consists of TMA Bands, Pivot Points levels , Trend Identification Ribbon and Super Trend system. Indeed, this indicator measures volatility. Market volatility is very high when the swings are wide open, and low when the swings are narrow.

How can we trade with TMA centred bands ?

The TMA Bands indicator uses the power of moving averages to draw the bands on the chart. Indeed, each band has a different function. For example, if the price rises above the upper limit, there is a chance of a reversal. Likewise, if the price breaks below the lower band, there is a chance of a new trend beginning. However, the middle band shows the trend and turns pink or blue depending on the direction of the trend. If the price rises above the upper limit, you can enter a forex short position. On the other hand, when the price falls below the lower limit, you can enter a long position. The middle band is like an intermediary between the upper and lower bands. Whenever the trend changes its path, it turns blue or pink. Pink is a signal of an uptrend, while blue represents a downtrend.

  • Buy strategy

When we use the TMA centred bands tool, then, we should follow this strategy to enter a long position :

  1. The price should be below the lower limit.
  2. Wait for the price trend to continue its path.
  3. Enter long trades on lower swings.
  4. Place a stop loss near the low of the entry point.
  5. Exit the trade when the middle band turns blue.
  • Sell strategy

If we are using this type of indicator, so, we should follow this strategy to enter a short position :

  1. The price should be above the upper limit.
  2. Wait for the price trend to continue its path.
  3. Enter a short trade on the upper swing.
  4. Place a stop loss near the high of the entry point.
  5. Leave the trade when the middle band turns pink.

Download TMA centred bands indicator for MT4

The TMA Centred Bands Indicator for MT4 draws the bands on the chart and shows you the overall price trend on Metatrader 4. It plots three bands: blue, pink, and blue-pink. The upper band includes blue, the lower band consists of pink, and the middle band represents blue-pink. However, these bands consist of moving averages, each with a MA period. As the trend reverses, the price will fluctuate between these bands, forming entry and exit points.

TMA centred bands for indicator MT4

Download TMA centred bands indicator for MT5

The TMA centred bands indicator for MT5 is also known as the Triangular Moving Average because it draws a triangle band on Metatrader 5 chart. The indicator uses a double-smoothed moving average to refine the values and plot the data in a simple format. The resulting signal curve absorbs price movements in a structured way and increases the efficiency of the trade execution process.

TMA centred bands indicator MT5
According to the chart above which is taken from the MetaTrader 5 platform, the price rises above the upper limit. In this case, the trend will reverse and the trader can go short.

Download TMA centred bands indicator for Tradingview

TMA centred bands indicator tradingview is a simple indicator which displays on the main price chart. It is used to identify where the price is likely to bounce or rebound. In the following Tradingview chart, the price goes below the lower limit so the trend will likely reverse signal and the trader enters a long position.

TMA centred bands indicator Tradingview

Conclusion

The TMA Bands indicator works on a period-by-period basis, so you can use it on all trading strategies. As well, the indicator gives you an overview of where the trend is heading. Alternatively, you can combine this indicator with confirmation indicators such as moving averages or RSI system to further confirm the trend.