TMA Center Band Indicator Download for MetaTrader 4 - Free | Forex Indicator Download - MT4/MT5 Resources

On June 23, 2025, in version 2, the indicator added alert/notification functionality

The TMA Centered Bands Indicator is a MetaTrader 4 indicator that uses the power of the moving averages to detect the overall trend direction shown by the bands on the chart.

The indicator consists of three bands: the upper band is red , the middle band is red - blue , and the lower band is blue . In uptrends , the middle band turns blue , and in downtrends , it turns red .

Whenever price moves outside the upper or lower limits, it may move back inside the upper or lower limits, providing an entry signal for the trade. Exiting the upper band will generate a sell signal while exiting the lower band will generate a buy signal.

Indicator Table

The chart below shows the price chart of Gold against the US Dollar [XAUUSD] on the 1 hour time frame. Near the $2,300 price range, the price fell below the indicator's lower band and then re-entered this area, causing the indicator's middle band to turn blue.

In this case a trend reversal occurs and a bullish trend and buy signal (Buy Position) is generated. Furthermore, near the $2,370 price range, the price exited the upper band of the indicator and the middle band turned red. A bearish trend and sell signal (Sell Position) are generated in this situation.

Overview

Given the importance of identifying the trend direction and trading accordingly, the TMA Indicator is one of those indicators that, by utilizing Moving Averages , can provide an overall view of the future trend direction and generate entry signals suitable for trading in line with the trend.

The TMA indicator optimizes entry signals by averaging prices and calculating market volatility using the following formula: ATR ( Average True Range) indicator.

Uptrend signal (buy position)

The image below shows the NASDAQ Index chart with sign (NAS100) on the 4-hour time frame. At points A , B , and C , price exits the lower band and then re-enters the lower band, causing the indicator's middle band to turn blue.

In this case, the indicator generates Buy Signal and indicates an Uptrend . You can enter a buy trade in conjunction with other confirmations , such as the RSI .

Downtrend signal (sell position)

In the image below, the price chart silver against the US dollar (XAGUSD) is shown on a 30-minute time frame. At points A , B , and C , price exits the indicator's upper band and then reenters the band, causing the middle band to turn red. I

n this scenario, a Sell Signal and Downtrend has been issued. You may consider placing a sell trade in conjunction with other confirmations , such as the stochastic indicator .

Settings of TMA indicator

• HalfLength : This indicator considers 12 candles for averaging. This setting determines its sensitivity to recent price changes.
• Price : This setting uses the closing price ('Close') , which indicates that the indicator should use the closing price of each candle to calculate the moving average.
• AtrPeriod : The period of the Average True Range (ATR) indicator is set to 50 . The extended time period helps smooth out the ATR calculation, making it less sensitive to smaller price swings and a better indicator of market movements over a wider time frame.
• The ATR indicator is used to calculate a moving average, which means the volatility measured by ATR is used to adjust how the moving average is calculated and plotted.
• TypeMultiplier : The bandwidth multiplier is set to 2 . This multiplier affects the distance between the center and outer bands, determining the width of the bands relative to the average true range. The higher the multiplier, the wider the range, potentially capturing more of the price action between the ranges.
• DevLookBack : The default value is 10 , this can be used to determine how many candles should be considered to support the deviation calculation of the band. This helps refine the band's ability to respond to changes in price volatility.

Conclusion

The TMA-centric Band indicator is versatile and works on any timeframe , allowing it to be used in all trading strategies . Additionally, this MT4 Bands and Channels indicator provides a comprehensive overview of trend direction.

You can also further verify trend direction by combining the TMA with confirmation indicators such as the RSI or moving averages . This integration helps you refine your trading decisions by providing more reliable analysis of market movements.