TMA Slope Indicator MT4 | MT5

The TMA Slope Indicator on MetaTrader 4 is classified as a momentum indicator derived from the Triangular Moving Average, which is a smoother alternative to a standard moving average. Unlike traditional moving averages, the TMA assigns greater weight to the middle values of a data set, reducing noise and offering a clearer perspective on trends.

Additionally, the TMA slope is calculated to assess the rate of change, enabling traders, on MT5 as well, to evaluate trend momentum. This provides a more accurate view of trend strength, helping to identify buy and sell signals, and to avoid weak signals.

Furthermore, to provide traders with a better understanding of this indicator, here is the formula for the TMA followed by the formula for its slope:

• The TMA is a double-smoothed moving average, calculated as:

TMA(t) = SMA of SMA(t)

• The slope measures the change in TMA values over a given interval:

Slope = [TMA(t) - TMA(t-N)] / N

For the trading example on metatrader 4, at the start of the downtrend, the red-line slope crosses the 0 level up-down, signaling a strong sell opportunity. As the slope reaches its lowest point, the market experiences a correction, generating a weak buy signal. Toward the end of the trend, the blue-line slope crosses the balance level from below with strong upward momentum, delivering a strong buy opportunity. This indicates the reversal of the trend into an uptrend. 

For the trading example on metatrader 5, at the beginning of the uptrend, the blue-line slope crosses the balance level bottom-up, signaling a strong buy opportunity. Whenver it reaches its peak, the market undergoes a correction, producing a weak sell signal. By the end of the trend, the red-line slope crosses the 0 level from above with a significant downward momentum, delivering a strong sell signal. This marks the reversal of the trend into a downtrend.