The FourAverage indicator: a new level of analysis of financial markets

As we fill out the rating table with the best trend indicators, we connect more and more advanced products.

Meet the FourAverage indicator – 10 years of successful work, dozens of real trading systems, outstanding forecasting abilities.

The RBTI indicator is the very first basic test, don't even try to trade without defining it. Most likely, you will be disappointed and face losses. All indicators should be subjected to such or similar studies.

And today we will test the 'FourAverage', finding out its true ability to determine the trend. The ranking table is already full of serious competitors, which means that FourAverage is facing severe strength tests. The indicator for the tests is provided by the software developer for MetaTrader 5 under the nickname “FastInvestments". In the downloads section, you can download a completely free demo version (it does not show the last 3 bars).

And so our subject stands at the start, like an athlete at the Olympic Games, ready to overcome all barriers and win a gold medal in the world of trend indicators. Let the competitors tremble, and the candles on the chart waltz under his wise guidance! Who knows, maybe "FourAverage" will surprise us all and become a real champion among indicators.

Go ahead, "FourAverage", conquer the tops of trends and the tops of the rating tables!

Content

What is 'FourAverage'?
Distinctive features
Configurable parameters
Trend interpretation
Calculate the RBTI rating for the FourAverage indicator
Conclusions

What is 'FourAverage'?

FourAverage trend indicator of technical analysis

In a world where information technology is developing at an incredible rate and the number of participants in financial markets is growing, traditional methods of analysis are becoming less effective. Classical tools such as the moving average or stochastic are no longer able to cope with the task of determining the direction of a trend or its reversal.

Our team has developed the FourAverage indicator, which is able to overcome these limitations. This leading trend indicator has a powerful mechanism for adapting to changing market conditions. Its unique smoothing formula allows you to work effectively with any trading instruments, be it currency pairs, cryptocurrencies or stocks.

FourAverage is not just another indicator, but a real innovation in the field of financial market analysis. It is able to indicate the correct direction of the future price over a long period of time, without losing its adequacy with sideways market movements.

One of the key advantages of the FourAverage indicator is its ability to adapt to different market conditions without having to manually adjust the parameters. This is achieved through a unique smoothing formula that allows the indicator to work effectively on different time frames and with different trading instruments.

Distinctive features

In addition, FourAverage has a high degree of visibility. Arrows indicating the direction of the trend and information about the results of previous trades make market analysis more convenient and intuitive. Traders can quickly evaluate the effectiveness of the indicator based on historical data and decide whether to use it in their trading strategy.

The FourAverage indicator can be used both independently and in combination with other technical analysis tools. As an independent tool, it allows you to determine the direction of the trend and the entry and exit points of transactions. In combination with other indicators, FourAverage can serve as a signal filter, helping to eliminate false positives and improve trading accuracy.

The effectiveness of FourAverage is confirmed by numerous tests based on historical data. The indicator has shown good results in various markets, including the markets of cryptocurrencies and stocks. Due to its flexibility and adaptability, FourAverage can become an indispensable tool for traders seeking to increase their profits and minimize risks..

The indicator has built-in ready-made sets of settings for different symbols and timeframes. Such ready-made sets can add the drawing of stop loss lines or the most anticipated take profits. Experts are available for free to fine-tune and automate trading. The indicator is easy to use and configure.

Configurable parameters

«PreSets» — This is a function of selecting ready-made settings. In this case, the parameters from the section "—=FA calculation settings=—" are not used in the work. However, if the "PreSets = Manual mode" mode is selected, the parameters from the "—=FA calculation settings=—" section will be taken into account in the calculation of the indicator.

«—=FA calculation settings=—»

«PeriodFA» - It is a parameter that defines the period for the basic averaging. Its value can range from 1 to 500. The higher the "PeriodFA" value is set, the lower the sensitivity of the indicator.
«Average_1» - values from 100 to 200 indicate the significance of small movements. Values from 0 to 100 set a negative value for small movements.
«Average_2» - values from 100 to 200 indicate the significance of normal movements. Values from 0 to 100 set a negative value for normal movements.
«Average_3» - values from 100 to 200 indicate the significance of large movements. Values from 0 to 100 indicate a negative significance for large movements.
«Average_4» - values from 100 to 200 indicate the significance of very large movements. Values from 0 to 100 set a negative value for very large movements.
«Range» – the range of previous values of the indicator, relative to which the histogram is plotted.
«Filter» – currently not in use. This parameter is reserved for future modifications of the indicator.

«---=Signals settings=---»

«PaintArrow» - enables the display of arrows when changing the color of the indicator.
«ModePaintProfit» - choosing the mode of calculating the profit from transactions (as if we were opening positions when changing the color of the indicator).
«Alert_» - enables notifications in the trading terminal. It is triggered when the color of the histogram changes.

Trend interpretation

To start testing the indicator, we need to determine the interpretation of the trend. The default method is to change the color of the indicator's histogram. This method is intuitive and convenient for visual analysis. When the histogram changes color, it signals a trend change.

Since the numerical values of the indicator are based on its previous results, we will add a method based on breaking through certain levels. To implement it, it is necessary to identify key levels that will serve as reference points for trend interpretation. Breaking through these levels up or down will indicate a change in trend direction.

Calculate the RBTI rating for the FourAverage indicator

We will perform several optimizations to find the best parameters for the criteria we are interested in. For clarity, let's add a report image to each set of parameters. You can find out more about the RBTI rating here.

Parameters that showed the best balance and IMP_opti_maxBalance = 5,69

FourAverage, MetaTrader5, XAUUSD, H1 - test max Balance for RBTI raiting

PeriodFA = 17;
Average_1 = 188;
Average_2 = 31;
Average_3 = 186;
Average_4 = 141;
Range = 51;
Level_Up 80;
Level_Dn = -1;

Parameters that showed the best RF and IMP_opti_maxRF = 5,69

FourAverage, MetaTrader5, XAUUSD, H1 - test max Recovery Factor for RBTI raiting

Полностью совпадают с параметрами для максимального баланса.
PeriodFA = 17;
Average_1 = 188;
Average_2 = 31;
Average_3 = 186;
Average_4 = 141;
Range = 51;
Level_Up 80;
Level_Dn = -1;

The parameters that showed the best ISP and IMP_opti_maxISP = 4,94

FourAverage, MetaTrader5, XAUUSD, H1 - test max ISP for RBTI raiting

PeriodFA = 17;
Average_1 = 188;
Average_2 = 47;
Average_3 = 170;
Average_4 = 140;
Range = 50;
Level_Up 81;
Level_Dn = -1;

FourAverage coped with the forward test and showed profit both in the flat area and in the trending area. This had a very positive effect on the final value of the RBTI v2.0 rating.

FourAverage, MetaTrader5, XAUUSD, H1 - Forward test for RBTI raiting

Average_IMP_opti = 5,44

IMP_all_maxBalance = 3,81

IMP_all_maxISP = 4,06

IMP_all_maxRF = 3,81

PC = 71%

RBTI = 3,89

Conclusions

The FourAverage indicator demonstrates high efficiency in determining trends, which is confirmed by the test results and the high RBTI rating (3.89). The result will be recorded in the leaderboard.
In the optimization section, the indicator showed excellent results with IMP_opti = 5.44, but there was a prolonged drawdown in the middle of the test, the reasons for which are not entirely obvious.
In the forward test with the obtained parameters, the indicator continued to show good results: IMP_all = 3.89 and a high percentage of the ratio to the optimization area (PC = 71%).
Testing on fresh data for the period from 01.01.2025 to 04.01.2025 showed an even higher result, which may be due to the pronounced trend nature of this area.
The FourAverage indicator can be a useful tool for traders seeking to increase their profits and minimize risks, not only in trending markets, but also during a flat.
The stability of forward tests opens up a huge potential for creating automated trading systems using the FourAverage indicator.