The Pips Indicator for MT4 uses dual moving averages to generate accurate buy/sell signals and trend-based trade exits. Learn how to trade reversals, breakouts, and trend continuations with this simple, powerful tool.

The Pips Indicator is a simple but highly effective trend-following indicator designed for the MetaTrader 4 (MT4) platform. Built using a combination of fast and slow moving averages, this tool highlights trend direction, entry signals, and potential exit points with clean and reliable crossover patterns.
Because of its accuracy and visual simplicity, the 100 Pips Indicator works well for:
Forex trading
Stocks
Indices
Gold
Cryptocurrencies
Traders can use it successfully for Scalping, intraday, swing, or multi-timeframe (MTF) analysis, although the best performance comes from higher timeframes such as H4 and Daily charts.
This guide explains exactly how to apply the 100 Pips Indicator in MT4 and how to interpret its buy/sell signals.
How the Pips Indicator Works
The indicator uses two moving averages:
Fast Moving Average (Blue)
Slow Moving Average (Red)
The interaction between these two MAs—specifically their crossovers—forms the core of the trading strategy.
Bullish Crossover
The blue MA crosses above the red MA
Signals upward momentum and a potential Trend Reversal
Bearish Crossover
The blue MA crosses below the red MA
Indicates downward pressure and potential sell opportunities
Because the indicator smooths out market noise, these crossovers help traders catch the early stages of major price movements.
How to Trade With the Pips Indicator in MT4
Buy Strategy
A buy signal occurs when:
The fast MA (blue) crosses above the slow MA (red).
The crossover appears near the bottom of a market range, or during a bullish breakout.
Price action supports the move (e.g., bullish candles, breakout patterns, or a higher low formation).
Entry:
Place a buy trade immediately after the bullish crossover.
Stop Loss:
Below the most recent swing low
Or below a key support level
Take Profit:
When the indicator plots a bearish crossover, signaling a possible trend reversal
Or at a predefined reward-to-risk target (1:2 or higher)
Sell Strategy
A sell signal occurs when:
The blue MA drops below the red MA.
The crossover forms at the top of a market range or during a bearish breakout.
Price confirms the move with bearish structure.
Entry:
Enter short immediately after the bearish crossover.
Stop Loss:
Above the recent swing high
Or above a resistance level
Take Profit:
When a bullish crossover forms
Or at your target profit level
Exit Strategy
One of the advantages of the 100 Pips Indicator is its built-in exit logic.
Simply exit your trade when:
The indicator plots an opposite crossover to your entry direction, signaling a trend shift.
This keeps you aligned with the dominant market direction at all times.
Why Traders Use the 100 Pips Indicator
Simple and clean visual signals
No complex parameters
Suitable for beginners and professionals
Works on all MT4 assets
Excellent when combined with support/resistance, price action, or breakout strategies
For even stronger entries, consider pairing it with indicators such as:
RSI
MACD
Supply/Demand zones
Trendlines
Conclusion
The Pips Indicator for MT4 is a reliable and beginner-friendly trend-following tool that helps traders identify clean buy/sell opportunities using moving-average crossovers. Its simplicity, versatility, and compatibility with various trading styles make it a strong addition to any trading system.
FAQ
The Pips Indicator (also known as 100 Pips Indicator) is a trend-following tool that uses moving-average crossovers to identify clean buy/sell opportunities. It plots two moving averages and generates signals when they cross, providing clear visual guidance for trend direction and entry points without complex parameters.
When the faster moving average crosses above the slower one, it generates a buy signal indicating potential bullish momentum. When the faster moving average crosses below the slower one, it generates a sell signal indicating potential bearish momentum. Exit trades when an opposite crossover occurs, signaling a trend shift.
The indicator provides simple and clean visual signals with no complex parameters, making it easy to understand and use. It is suitable for beginners and professionals alike, works on all MT4 assets, and provides excellent results when combined with support/resistance, price action, or breakout strategies.
Enter trades in the direction of the crossover signal, using the indicator as a trend filter. For stronger entries, pair it with indicators such as RSI, MACD, or Supply/Demand zones. The indicator keeps you aligned with the dominant market direction, making it ideal for trend-following strategies.
Yes, the Pips Indicator works on all MT4 timeframes and currency pairs. Its simplicity, versatility, and compatibility with various trading styles make it a strong addition to any trading system, suitable for scalping, day trading, and swing trading strategies.
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Published:
Dec 13, 2025 22:22 PM
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