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There are other uses for it maybe as a trend indicator so feel free to experiment. The indicator will appear similar to the Bollinger Bands on your chart but smoother; it has a middle line and two outer bands that adjust constantly in an attempt to contain price. Hmm, some indicator tries to contain price… haha, what a joke. No indicator can contain price! Once price moves outside the TMA, it is starting to become overextended and to show signs of exhaustion.
Take a look at the picture below and notice what happens when price touches the TMA bands or even goes outside them. I chose this picture on purpose to make you understand that TMA is not some magic indicator and should NEVER be used alone: look to the left of the picture.
You see how price exits the bands and just keeps going? If you were to trade solely based on the signals provided by the TMA, you will hate this indicator. It is not meant to be used as a trade trigger. The middle line changes colors form blue to red and vice versa, giving you an indication of trend and you will also notice some numbers in the lower right corner: TMA Range — shows you the distance in pips between the bands.
This number will fluctuate according to current volatility and also, the bands will come closer together in times of slow movement. TMA trend — shows you how strong the current trend is; a higher value means the trend is strong and a lower one indicates a ranging market. The numbers on the TMA itself show you the distance in pips between current price, TMA bands and TMA middle line.
These are the basic uses of the indicator but keep in mind it is not meant to be used as a standalone indicator. Always remember this is just my opinion and maybe some of you will take it off your charts immediately. Although I have been using the TMA for several years now and I am comfortable with it, I still get sucked into bad trades sometimes. However, my opinion on this tool is clear: I never trade without it and I think that says a lot.
Good luck if you need it. Popular Reviews 24Option IQ Option Nadex HighLow Ayrex eToro BDSwiss Binary. com IG OptionRobot Bitcoin Code Tesler App Binary Robot Crypto Robot GreenFields Capital The Bitcoin Trader BinBot Pro The Crypto Genius. How I use the TMA? Why does the TMA Suck? The conclusion — Even best friends suck… sometimes Although I have been using the TMA for several years now and I am comfortable with it, I still get sucked into bad trades sometimes.
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