The XMA indicator is a vertex FX indicator which is based on two moving averages, and has a digital filter to detect the market trend. When the price is trending, the XMA indicator is sloping upwards (uptrend), or sloping downwards (downtrend). When the price is sideways, the XMA indicator is sideways and we avoid entering the market in such scenarios.
To calculate the XMA, we first calculate the moving averages, and compare the first moving average with the previous value of the second moving average. If the difference between the two is above the POROG threshold, then the XMA is equal to the second moving average, otherwise it equals the previous value of the XMA. This enables the XMA to detect trending markets.
BUY - Enter BUY when candle closes above the XMA indicator and the XMA is moving upwards. Place stop loss at support below the XMA indicator.
Note: -Do not enter BUY trade if candle gaps above XMA.
SELL - Enter SELL when the candle closes below the XMA indicator and the XMA is moving downwards. Place stop loss at resistance above the XMA indicator.