This is another excellent indicator for the cTrader platform, the LSMA is based on a moving average indicator, but the key difference is that the calculation uses the sum of the least squares to find a straight line that will best fit the current price data and this formula is applied for each period. The trader also has the option to receive Telegram trade signals directly to their mobile phone or PC Desktop. It calculates what the value would be if the regression line continued.
The calculations are as follows for the (LSMA):
- LSMA = b * t + a where x is the price, t is the time of this price, n is the period
The Least Square Moving Average (LSMA) indicator is used to identify the trend when the LSMA line crosses above or below the current symbol price, as long as the line is below the price it is seen as a bullish trend and when the line crosses and stays above the price it is seen as a bearish trend. This indicator has the added bonus of sending a Telegram message when the trend changes.
How to Trade Using this Indicator
The LSMA indicator is very easy to use and will appeal to new traders due to the fact that trades can be entered or existed when the LSMA line passes above or below the price line as shown in the picture above. The signals from this indicator will be faster and the noise will be smoothed, but there is also the danger of false signals.
The settings below allow you to configure the indicator as well as enter your credentials to send Telegram messages.
- The Length setting is the periods (bars) back for the calculation.
- The Bar Price allows you to choose, the candle price of open, high, low or close.
Telegram Alerts Configuration
When there is a trade signal you can get a free instant telegram message.
Install the Telegram App on your mobile phone or PC and receive free instant messages, you no longer need to pay using an SMS service.
Watch a quick video demonstration showing you how to get started and the features of the LSMA indicator..
Duration: 4 minutes - Watch Video Tutorial
How To Install & Open
First, make sure you have the cTrader trading platform installed and then simply unzip the file and double-click on it to automatically install it onto the platform.
Remember, this is an Indicator.
If you have any questions, please first search our product help forum for the answer, if you cannot find it, post a new question.
Instant Chat Support
If you want a speedy reply to your questions just post your questions on our Telegram chat group.