Dual Color MA: Automated MT5 trend signals for faster, clearer trading decisions

This 2026 review and performance analysis examines Dual Color MA and its practical application on MT5 charts. Dual Color MA is an indicator that overlays two moving averages and flips both line colors based on the closing price position relative to the fast MA, providing immediate visual context for trend direction. In this review the focus is on signal timing, sensitivity to period choices, and how the indicator behaves across different volatility regimes. What makes Dual Color MA unique is its strict binary visual rule set: color change equals trend confirmation, which reduces subjectivity for traders who prefer rule-based entries. The algorithm itself is straightforward: the fast MA determines color state while the slow MA acts as a filter to avoid trading against the larger trend. This makes implementation transparent and easy to combine with other filters such as volume or momentum. Dual Color MA handles trending markets best; it provides clean entries during sustained moves and helps reduce overtrading. However, like any MA-based approach, it is vulnerable to choppy sideways conditions where frequent color flips may produce false signals. Risk management is left to the trader, but common approaches include ATR-based stop losses and position sizing capped at 0.5–2% risk per trade. Expected performance characteristics are moderate win rates with larger average winners, suitable for trend-following portfolios. The developer, Maksim Novikov, publishes tools for MT5 and emphasizes transparency and simplicity in design, which this indicator reflects.