Moving Average Indicator
If you’re only using one MA line, prepare to deal with plenty of false signals. On the other hand, multiple MA lines (a so-called “fan”) make up a pretty reliable reversal indicator. https://preview.redd.it/4ptvgz443t741.png?width=635&format=png&auto=webp&s=fa527cc79629bff283f84b077e11eb8acd2422f3
On the chart above, you can see three simple МАs with different periods: 100 (blue), 35 (green), and 15 (red). The 100-period blue МА on Н1 timeframe shows the overall direction of the GBP/USD price. However, the price has broken the МА (100) multiple times confusing the trader and providing false reversal signals.
To get a more precise picture, we added two more MAs with the periods of 35 and 15
. Now we can outline the reversal signals:
- If the bar closes below МА (100), МА (35), and МА (15) and the fastest MA is below the slower MAs, this is a bearish reversal signal (i.e. the price is about to go down). See the bearish reversal in the left part of the chart.
- If the bar closes above (100), МА (35), and МА (15), and the fastest MA is above slower MAs, you should go long. See the reversal signal in the right part of the chart.
If you apply the MA fan on your chart, the indicator will signpost the beginning of a strong trend. However, the MA fan also generates false signals when the price goes flat. Another problem is that the MA fan provides scarce reversal signals, hence money-making opportunities are few.
While MACD can’t hold a candle to MA in indicating trend reversals, it’s good at showing the strength of a trend and trend cycles.
On the H4 chart below, you can see MACD (5,100,5) for the EUUSD currency pair. The green histogram and the red dotted line crossing the zero level is a good reversal signal. https://preview.redd.it/35zhx6q63t741.png?width=635&format=png&auto=webp&s=3d689c518c91c5928fef4ff1b397507e5832cdfb
Note that the zero level must be crossed by two lines, the main (green) one and the signal (red) one
If the green histogram crosses the zero level but the red line doesn’t, you don’t open a trade.
Take a closer look at the chart above. A reversal signal occurred at 12 am on May 9, 2014 and held till 8 pm on June 19, 2014. The downtrend that followed the MACD signal could have earned us 200 pips
It’s important to understand that the MACD indicator is not a perfect tool. It has its fair share of disadvantages
. For example, it generates lagging signals and reacts to false breakouts. Despite all cons, MACD will make a great addition to your trader’s toolbox.
The third reversal indicator on our list is Stochastic Oscillator. The Stochastic indicator is good at indicating the beginning and end of a trend. It provides reliable reversal signals. https://preview.redd.it/c3h8vfe83t741.png?width=635&format=png&auto=webp&s=b5b1d2f75338eb2be2647bb685f88f8f3cb85787
On the chart above, you can see the Stochastic (250,3,3) line for the EUUSD currency pair. As you can see from the chart, Stochastic predicted the upcoming reversal with a high degree of accuracy.
By crossing the levels 80 and 20, Stochastic (250,3,3)
signaled that the bearish trend was transitioning into a bullish one.
Note that that an entry signal had occurred on January 24, 2014 and held till Stochastic (250,3,3) crossed the 20 level on February 5, 2014. If we opened a short trade, we would have made about 150 pips.
The best thing about Stochastic is that it’s highly sensitive to a price changing its direction. See for yourself! The short entry signal by Stochastic was more accurate than the one provided by MACD. Plus, Stochastic provided the exit signal when the price was about to reach its lowest level.
Or you can just use this : Forex Reversal Indicators - Best Trend Reversal Indicators - MT4 & MT5 - Free Download
The MT5 FXTS does not use historical data like many other Forex currency applications, to give you up-to-the-minute accuracy, it takes all the hard work out of looking at 28 currency charts to see which currencies are weak and strong to identify potential candidates for each side of a Forex trade to save you having to look at all the currency MT5 for PC is the most popular program’s version, as most traders use their personal computers rather than mobiles or tablets during their work. Download MetaTrader 5 for Windows and enjoy plenty of awesome features offered by the new tool! MT 5 for PC can surprise with its useful features: The MT5 FXMCBS does not use historical data like many other Forex currency applications. It gives you up-to-the-minute accuracy, by taking all the hard work out of looking at 28 currency charts to see which currencies have the right trading conditions to identify potential candidates for each side of a Forex trade. This is not a real world indicator, but a simple demo of BPNN library, originally written in C++ and… 3D Moving Average – indicator for MetaTrader 5 Feb 15, 2020 71 Free Download 100 Best MT5 Indicators.... Hilo Up-down Strategy Bot.... Even Odd Vix strategy Bot.... Trading Business from Forex lines All Version.... Online investing System-Gold DZ Indicator.... Forex millionaires-Crystal Fx System.... Best intraday trading strategy.... Mt5 indicators free download.... Forex live best strategy 1....
I do not want to praise the result of our work, but it seems to me that in the near future it is unlikely that anyone will succeed in doing something better! Download, test, buy and start making ... All about Trading in Forex Marked How to download and Install Magic Trend Trader Indicators on MT4 Download Link for Indicators: Benouzzy winning strategy indicator 🔇This video is not an investment advice."Forex and Binary options trading carry a high level of risk and can result in the loss of all your fund.You should never invest money that you cannot ... EasyTrendFollower is best forex indicator mt5 indicator for scalping and day trading that offers instant forex signals. It shows two different arrows in a chart, blue when there is a buy signal ... Thank you for watching the video, do not forget to subscribe to the channel and put a like! To install the software you need to download and run the installer. For peace of mind and confidence ...