The Stealth Indicator for MT4 is a versatile trend-following tool that combines the Simple Moving Average (SMA) and the Least Square Moving Average (LSMA) to generate reliable bullish and bearish forex trading signals. By analyzing the high and low values of both moving averages, the indicator provides clear entry and exit points for profitable trades.
It works on all MT4 chart timeframes, making it suitable for scalpers, intraday traders, and swing traders. Both new and advanced traders can easily apply this indicator, while algorithmic traders can integrate it into automated trading systems.
How the Stealth Indicator Works
The indicator plots lines in a separate window to signal market direction:
- Green Line – Bullish trend signal
- Red Line – Bearish trend signal
Signal Confirmation
To reduce false entries, it is recommended to wait for two consecutive candles in the same trend direction before taking a position.
Trading Strategy
Buy Setup
- Green line appears indicating bullish momentum.
- Enter a Buy trade after confirmation with two consecutive candles.
- Place stop loss below the previous swing low.
- Hold the trade until:
- The red line appears, signaling a bearish reversal, or
- Your predefined target or risk-reward ratio is reached.
Sell Setup
- Red line appears indicating bearish momentum.
- Enter a Sell trade after confirmation.
- Place stop loss above the previous swing high.
- Close the position when:
- The green line appears, signaling a bullish reversal, or
- Desired profit is achieved.
Multi-Timeframe Trading Strategy
For higher probability trades:
- Determine the overall trend on a higher timeframe (H1, H4, Daily).
- Use the Stealth Indicator on a lower timeframe for precise entry in the trend direction.
- This method ensures that trades align with dominant market momentum.
Key Features
- SMA and LSMA combination for trend detection
- Clear bullish (green) and bearish (red) lines
- Works on all MT4 timeframes
- Suitable for scalpers, intraday, and swing traders
- Beginner-friendly and advanced strategy compatible
- Supports automated trading systems
- Requires simple confirmation for safer entries
Who Should Use This Indicator?
- Forex scalpers and intraday traders
- Swing traders looking for Trend Confirmation
- New traders seeking simple visual signals
- Advanced traders using confluence or multi-timeframe strategies
- Algorithmic traders integrating SMA and LSMA logic
Why Choose the Stealth Indicator?
The Stealth Indicator enhances classic SMA strategies with LSMA confirmation, reducing false signals while providing a clear visual guide for entries and exits. It helps traders:
- Identify trend direction quickly
- Time market entries with higher confidence
- Manage trades with structured stop loss and profit rules
- Build reliable automated trading strategies
Conclusion
The Stealth Indicator for MT4 is a complete SMA and LSMA-based trading tool that delivers dependable bullish and bearish forex signals. With simple visual cues and multi-timeframe applicability, it is ideal for both new and professional traders seeking trend confirmation and reliable entry signals.
