TMA Centered Bands Indicator MT4 | MT5

The TMA Centered Bands Indicator on MetaTrader 4 is a trend-following indicator that is formed by three bands on the chart price and each band is calculated using a Triangle Moving Average (TMA), represents the main price trend and gives a unique outlook on price movement compared to traditional moving average.

Furthermore, this indicator typically shows on MT5 whether the market is trending or not. The central TMA line in the bands helps identify the trend, when prices stay above it, it signals an uptrend, while staying below suggests a downtrend. Otherwise, the upper and lower band adapt to price volatility, helping traders detect breakout points or reversal zones relative to the trend.

The TMA Centered Bands Indicator provides traders with various insights on MetaTrader.

For the trading example on metatrader 4, in an uptrend, a bounce off the lower band offers a buying opportunity and help identify an enter point, while the upper band guiding for an exit point. At the end of the trend, when the price moves significantly beyond the upper band, it highlights an overbought market condition, providing signal for potential reversal and the trend become a downtrend.

For the trading example on metatrader 5, in a downtrend, a rejection near the upper band offers a selling opportunity for the trader and help identify an enter point, while the lower band in this case guiding for an exit point. At the end of the trend, when the price moves below the lower band, it highlights an oversold on the market, providing signal for potential reversal and the trend become an uptrend. 

For getting the best results , this indicator should be combined with volume or oscillators indicators to match the market’s volatility and confirm buying or selling signals.