Moving Average Analysis

The heatmap displays the deviation rate of the 20-period moving average for each time frame of the selected instrument. You can quickly grasp the current trend status at a glance.

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Tutorial / How to Use

How to Read & Use This Tool

The Moving Average Analysis Heatmap lets you check trends across multiple currency pairs and timeframes at a glance through colors. From the basic concepts to chart reading and trading procedures, we'll guide even beginners through it step by step.

14 Key Terms to Know First

Just understanding these 4 terms before using the tool will dramatically speed up your learning.

① Moving Average (MA)

A line that smoothly connects the average of past prices. For example, a "20-period moving average" connects the average closing prices of the most recent 20 candlesticks. When the price sits above the average, it suggests an upward bias; when below, a downward bias.

② Timeframe

The duration each candlestick represents. The 5-minute chart shows short-term moves, while the 1-hour chart shows broader trends. Comparing short and long timeframes helps reduce false signals.

③ Deviation Rate

The percentage by which the price deviates from the moving average. The greater the deviation, the stronger the momentum—and the higher the chance of reverting. This tool expresses the deviation rate through color intensity.

④ Trend Following

The most fundamental strategy of "buying when the market is rising and selling when it's falling." This tool is designed to support trend-following strategies.

2What Can This Tool Do?

Visualize Market "Temperature"

Each symbol's deviation from the 20-period MA is shown by color. Dark Blue = Strong Uptrend / Dark Red = Strong Downtrend—understand the market intuitively.

Monitor 4 Timeframes at Once

5-minute, 15-minute, 30-minute, and 1-hour timeframes consolidated on a single screen. Instantly verify whether short-term and mid-term trends align.

Fast Symbol Screening

Scan currency pairs, indices, commodities, and cryptocurrencies in seconds. The perfect pre-filter before opening detailed charts in MT4/MT5.

3Reading the Colors — 9-Stage Signal

Each cell shows the deviation from the 20-period moving average for that symbol on that timeframe. The further the price moves from the average, the more intense the color, indicating stronger trend momentum.

▲ Dark Red ｜ Strong DeclineWhite / Neutral ｜ RangeStrong Uptrend ｜ Dark Blue ▲

Color	Price vs 20MA	What the Signal Means
Dark Blue	Significantly Above	Strong upward momentum—powerful uptrend in progress. Trend-following buy entry recommended.
Blue	Above	Clear upward bias. Trend continuation is in play.
Light Blue	Slightly Above	Early-stage uptrend or weakening momentum.
White / Neutral	Near the Average	No clear trend. Range-bound market. Best to stay on the sidelines.
Light Red	Slightly Below	Early-stage downtrend or weakening momentum.
Red	Below	Clear downward bias. Trend continuation is in play.
Dark Red	Significantly Below	Strong downward momentum—powerful downtrend in progress. Trend-following sell entry recommended.

⚠️ Beware of "Too Dark" ColorsVery dark blues or reds may indicate the market is overextended (overbought / oversold). They can signal an imminent pullback or reversal—don't jump in. Wait for a pullback or rebound, as the textbook recommends.

44 Key Patterns to Remember

By reading the heatmap vertically (across all timeframes for the same symbol), you can identify typical entry opportunities.

PATTERN A

Pattern A — Strong Uptrend

How to Spot: All four timeframes are aligned in dark blue.

What It Means: Trends are perfectly aligned from short to medium term—the most reliable bullish signal.

Strategy: Wait for a pullback and enter long

PATTERN B

Pattern B — Strong Downtrend

How to Spot: All four timeframes are aligned in dark red.

What It Means: Trends are perfectly aligned from short to medium term—the most reliable bearish signal.

Strategy: Wait for a rally and enter short

PATTERN C

Pattern C — Dip Buying Opportunity

How to Spot: 30m and 1h are dark blue, but the 5m has temporarily turned red.

What It Means: A short-term pullback within a larger uptrend—prime opportunity to buy the dip.

Strategy: Buy on the initial bounce as the 5m returns to blue

PATTERN D

Pattern D — Rally Selling Opportunity

How to Spot: 30m and 1h are dark red, but the 5m has temporarily turned blue.

What It Means: A short-term rally within a larger downtrend—prime opportunity to sell the rally.

Strategy: Sell on the initial drop as the 5m returns to red

💡 The Golden Rule of TradingUse long timeframes to determine direction, and short timeframes to time your entry. When the 1h and 30m timeframes agree, signal reliability dramatically increases.

55-Step Daily Workflow

Use this tool not as "the answer" but as a pre-filter for narrowing down symbols worth watching. Make this routine part of your day:

Open the Heatmap First ThingBefore launching MT4/MT5, check the overall market temperature on this page. It only takes 30 seconds.

Look for Strong PatternsSwitch between symbols using the category and symbol dropdowns. Look for fully aligned trends (Pattern A/B) or dip/rally setups (Pattern C/D).

Narrow Down to 2–4 SymbolsNote only the most attractive currency pairs with the cleanest color alignment. Decide today you won't look at the rest.

Detailed Chart AnalysisOpen MT4/MT5 and run full technical analysis—entry triggers, stop loss, risk management—only on the narrowed-down symbols.

Monitor and Re-CheckReturn to the heatmap periodically. If the color pattern significantly shifts, reassess your open positions.

6Do's and Don'ts

✅ Use as a Filter, Not a TriggerThe heatmap tells you "which" symbols to analyze, but not "when" to enter. Always confirm with chart-based signals.

✅ Prioritize Multi-Timeframe AlignmentWhen 3 or 4 timeframes show the same color, the signal is strongest. Single-timeframe signals are far less reliable.

✅ Check at Market OpensThe Tokyo, London, and New York opens are when momentum tends to shift. The heatmap helps you quickly identify which symbols are moving.

✅ Combine with Other Research Hub ToolsPair with RSI Analysis, key support/resistance, and the Volatility Heatmap for a more comprehensive market view.

❌ Don't Trade by Color AloneDark blue or red cells are starting points for analysis, not buy/sell signals in themselves. Always apply proper risk management and chart confirmation.

❌ Don't Chase Extreme DeviationsVery dark colors may indicate the market is overextended and a pullback is imminent. Be cautious about entering at extreme levels.

❌ Don't Ignore News EventsEconomic releases (employment data, CPI, central bank decisions) can cause sudden color changes regardless of the underlying trend.

❌ Don't Skip Timeframe ContextBefore reading rows horizontally (one timeframe over time), always read columns vertically (all timeframes at the same moment) to understand the full picture.

7Frequently Asked Questions (FAQ)

Why a "20-period" moving average?

20 is the de facto standard for short-term trade analysis—it offers the best balance between responsiveness and noise reduction, making it widely supported across day trading and swing trading. Across the four timeframes this tool covers, 20 periods represents roughly the last 100 minutes (5m) / about 5 hours (15m) / about 10 hours (30m) / about 20 hours (1h) of price action—capturing the short-to-mid-term flow needed for day trading.

What does it mean when all four timeframes are in opposite colors?

For example, "1h = blue, 5m = red"—a misalignment between long and short trends—signals a transition phase. It's safer to skip new entries and wait until the market direction stabilizes.

Should I ignore symbols that are mostly white (neutral)?

For trend-following strategies, generally yes. However, for counter-trend (mean reversion) traders targeting range markets, these can actually be opportunities. Choose based on your strategy.

Can I win with this tool alone?

No. This is a scanner to narrow down symbols. Actual entries should combine multiple factors: candlestick patterns, support and resistance, stop loss placement. Risk management (e.g., risking no more than 1–2% of your account per trade) is also essential.

How often does it update?

The heatmap updates almost in real-time. However, immediately after major market moves, colors can change rapidly—make a habit of refreshing the page to see the latest colors.

Can I use it for non-FX instruments (indices, crypto)?

Yes, you can. However, since each symbol has different volatility, liquidity, and trading hours, the meaning of the same "dark red" can differ. Until you're comfortable, we recommend starting with one category (e.g., major FX pairs).

8Glossary (Mini-Dictionary for FX Beginners)

Trend Following: Entering in the same direction as the trend—buy in an uptrend, sell in a downtrend. The basic strategy this tool assumes.
Counter-Trend (Mean Reversion): Entering against the trend, targeting short-term reversals. An advanced technique—harder for beginners.
Pullback (Dip): A temporary decline within an uptrend. The prime time to add long positions.
Rally: A temporary rise within a downtrend. The prime time to add short positions.
Volatility: The size of price movements. Higher volatility means more violent moves and larger gains/losses.
Range Market: When the market lacks clear direction and oscillates within a fixed range. This tool will show mostly "white / neutral".
Stop Loss: Automatically closing a position when unrealized losses reach a set amount. Essential for every trade to protect capital.
Take Profit: Closing a profitable position to lock in gains. The trick is deciding the rule in advance.
Multi-Timeframe Analysis: Analyzing the market by combining multiple timeframes. This tool visualizes that analysis.
Spread: The difference between bid and ask. The broker's cost—an effective fee that occurs the moment you enter a trade.