Forex for a trader
Most accurate forex system

Most accurate forex systemMost Accurate Forex VSD Trading Signal System. Forex vsd system This framework works on the basis of 15 minutes to the 1 hour of the work time. Everyone who is the part of the forex trading can know that there are a lot of the indicators that are actually really work but there are only a few ones who can see and imagine the working of the VSD forex trading in the MT4 indicator. You can get the full information all over the internet as it is so much difficult for us to describe all the information in a single post content but we will try the best of best information guide to share with you. Best Forex vsd system mt4. So be ready from the VSD system functions features: We have built the function for the day traders. In short it is optimized to work on the keygion of the 15 to 60 minutes and the recommended trading way is to trade US crosses only for the better results. It has total of the 8 indicators that are working in generating of the accurate entry and existing points. All traders can now look on the screen for the system which will not repaints. You can customize the all 8 indicators by setting alert in different codes and colors. This is the trending software earning and trading software packet that are only applicable in the trending. There are many Metatraders indicators such as: VSD VSD_HA VSD_Signal Arrow VSD Buy Sell VSD Vostro.

It is the perfect combination of the forex trading that deals and work for the working area in the MT4 indicators along with the many other with the best of the best working criteria. Vostro indicator mt4. It is giving us the opportunity that provides the help guide to detect the all patterns in price and in the dynamic views. How To Install The VSD Forex Scalping. Open the. zip file Copy MT4 and EX4 from the folder in the top of the list Copy the TPL file from the folder Start your metatrader client Move right to select the VSD scalping file You will see the VSD Forex Trading Scalping in the installation drive. You can get the full of the software and all it’s tools with the soft of these keys with the license package from only our site. We are not selling the robotic or automated trading system or functions in any way, as we believe that the function that is working with the most powerful area in the VSD functions are manually runners and can’t be modifies or change without the company exchange written permission. So that we are working with the accurate running system tricks and guideline will be provided through the CD case. We are only offering the software that is enable you to lead the building of the highly personalized , profitable during the VSD trading system in the forex trading world all over the seas in the world but specially in the United States. So stop the thinking work and just make your day by buying this tool just for today from the site. Automated Forex Trading System – 80% Accurate Forex Scalping System Strategy With MACD And Stochastic Indicator. As a professional trader spending hours on hours per week looking at charts, you start to develop a technical vision which unconsciously lets you see cardinal points in the market, overlooked by the untrained eye. For several years, I have been following a certain pattern in the market which produces over 80% winning trades every time I apply it . Use these NON-REPAINT Tools For Making The Perfect Trade Entry ( the best trading tools all traders MUST HAVE ) Use a demo account or a small live account first to practice this trading system DOWNLOAD TRADING SYSTEM. After working with it manually for several years and taking very nice profits from the market, I have started the phase where I am trying to automate my rules of trading as much as I can. My belief is ( and it’s almost certainly a fact ) that there are certain strategies, especially the most accurate ones, which simply cannot be converted into 100% automated without losing accuracy and the Pips Carrier is one of them . However, using available technology in a smart way allows you to mediate this deficiency and achieve at least 95% automation. A late night dinner with a dear friend led me to a decision. “Why not publish it and let others enjoy it as well, and, more importantly, profit from it?” His enthusiasm convinced me. In addition, releasing this system goes hand in hand with my primary goal, which is to increase the level of trading for many traders out there.

With the help of my trading tools, I have created for you (well, Marina coded it so she deserves some credit), the Pips Carrier, which turns out to be a piece of cake even for beginners, allowing them to produce amazing results right from the start. My belief is that even a trader who uses technical analysis must understand the basics of the indicator he uses in his day to day trading. The first indicator I want to talk about is the MACD indicator. MACD stands for Moving Average Convergence Divergence. It is a very important indicator. Unfortunately, I don’t know a lot of traders who have an in?depth understanding of the importance of this indicator, and even fewer traders who use it as they should. The MACD indicator is considered by many, including myself, to be one of the most reliable of all the existing indicators in technical analysis—when used correctly (which is what I’m here for). This indicator has been developed by Gerald Appel , who is considered a classic technical analysis guru. The MACD indicator consists of 2 moving averages and a histogram. This is what it looks like: The BLUE average is the short period average and the RED average is the long period average.

Note : the MACD Complete indicator included with the Pips Carrier installation is NOT the same as MetaTrader’s built in MACD. The one you got with Pips Carrier follows the classic form of the MACD. The histogram (the vertical bars you see below the lines) represents the difference between the two averages. Zero level is the most important level of this histogram. This is a test level. When the histogram is above zero level , the currency is on an uptrend . When the histogram is below zero level , the currency is on a downtrend . Let’s look at the following chart and analyze it: You notice that the histogram consists of several slopes. A histogram’s slope determines the current direction of the market . If a histogram is above zero level and its slope is facing down, this is a sign that the market is expected to decline. If a histogram is below zero level and its slope is facing up, it means that market is likely to go up. Let’s look at another example: In this strategy we will look for a very specific setup: For a long trade , we want the histogram to: Be above zero level. Then we want it to start declining towards the zero level. After it nears the zero level, we want it to reverse and go up again. This situation indicates that the market is on its way to a reliable uptrend, one that will allow us to join it. An example of a long trade such as the one we’ve just described: For a short trade, we want the histogram to: Be below zero level.

Then we want it to start rising towards the zero level. After it nears the zero level we want it to reverse and go down again. This situation indicates that the market is on its way to a reliable downtrend, one that will allow us to join it. For example: We want to join this downtrend. Now, you are probably wondering: when exactly should we enter this trade? In order for us to answer this question we should turn to our next indicator – the Slow Stochastic. This indicator will help us with making a final confirmation of this trade and it will determine the exact point to enter it. I’ve included the Stochastic with the Pips Carrier template, and this is what it looks like: This indicator consists of two very important levels: Level 80 and level 20. These two levels represent extreme zones . Level 80 reflects the overbought zone and level 20 represents the oversold zone . I assume that when the market reaches these levels, it is about to change its direction. So, if the Stochastic reaches level 80, I would expect the market to turn down. If it touches level 20, I would expect it to go up. After we’ve learnt about these two indicators, let’s see exactly how we should execute trades. I’m going to divide this explanation into the two possible scenarios: Entry for buy (long) Entry for sell (short) 1. First we need to recognize a turning point on the MACD histogram . This means that the blue histogram bars should be above the zero level, and then it should start declining. Finally it should reverse and go up again.

2. After we’ve made sure that conditions are met on the MACD histogram , we should turn to the Stochastic indicator and see its position: we need it to be on the oversold area (around level 20); we want the two lines to cross each other; and we want the lines to face up . We want at least one of the averages to be below level 20. 3. Now is the moment we should determine our exact entry point . The moment we see the histogram rise again and the stochastic decrease to the oversold zone, we need to wait for the candlestick that created this condition to close. As soon as the candlestick is closed, we should enter this trade. Let’s analyze a long trade example: In this example we can clearly see that the histogram is facing up again and that the Stochastic lines have crossed each other on the oversold level, on their way up. Here is another screenshot of a long trade: The histogram is facing up and the stochastic lines have crossed each other on the oversold zone, level 20. There’s a very important point I would like to add. It refers to a situation where the histogram is above level 0 and declines below level 0 . If it happens (i. e., if it declines below level 0), it has to reverse and return immediately above this level on the next bar in order for this to be a valid trade setup. For example: Now that we understand how to enter a long trade, the next step is managing it correctly. Let’s see how we should manage a long (buy) trade. We place the stop loss 1 pip below our base candlestick, which is the candlestick where all the conditions have been met. For Example: Here I’ll close the trade in two parts: 80% of the trade will be closed initially, and then I’ll close the remaining 20%. First Take Profit Target My first take profit goal is to set a profit target of a 1:1 ratio between the stop loss and the take profit. For example: If I risk 50 pips, my take profit target will be 50 pips. When the price reaches the first take profit target, I’ll close 80% of this trade.

Second Take Profit Target After the first part of the trade has been closed, I will move the stop loss to the breakeven point (that is, I’ll change it to the trade’s opening price). The second profit target is twice the stop loss. For example : If I’ve risked 50 pips my second profit target is 100 pips. This is a screen shot of target 2: Our first take profit target is closed successfully in 80% of trades and the second profit target is closed with a profit in 45% of trades. This strategy repeatedly generates impressive returns for me, and I’m sure that once you master it, you will see the difference in your bottom line as well. On the following page we will analyze short trades. How should we enter a short (sell) trade? 1. First we need to recognize a turning point on the MACD histogram. This means that the histogram should be below the zero level, and then it should start rising. Finally it should reverse and go down again. For example: 2. After we’ve made sure that conditions are met on the MACD Histogram , we should turn to the Stochastic indicator and see its position: we need it to be on the overbought area (around level 80); we want the two lines to cross each other; and we want the lines to face down. We want at least one of the averages to be above level 80. 3. Now is the moment we should determine our exact entry point .

The moment we see the histogram fall again and the Stochastic reach the overbought area; we need to wait for the candlestick that created this condition to close. As soon as the candlestick is closed, we should enter this short sell trade. This is an example of a short sell trade: Another Example of a short sell trade: Please note : if a histogram is below level 0 and starts rising above this level, it has to reverse and return immediately below this level on the next bar in order for this to be a valid trade setup. Now that we understand how to enter a long trade, the next step is managing it correctly. We place the stop loss 1 pip above our base candlestick, which is the candlestick where all the conditions have been met. We should add the spread to the stop loss in a short trade, so we place the stop loss 1 pip+ spread above the high of our base candlestick . Here I’ll close the trade in two parts: 80% of the trade initially, and then the remaining 20%. First Take Profit Target My first take profit goal is to set a profit target of a 1:1 ratio between the stop loss and the take profit. For example: If I risk 50 pips, my take profit target will be 50 pips. When the price reaches the first take profit target, I’ll close 80% of this trade. Second Take Profit Target After the first part of the trade has been closed, I will move the stop loss to breakeven point (that is, I’ll change it to the trade’s opening price). The second profit target is twice the stop loss. For example: If I’ve risked 50 pips, my second profit target is 100 pips. That’s it my friend. This strategy has proven to be very reliable and accurate. It is also easy to use—the ultimate way to enjoy and take advantage of market trends.

I wish you good luck with your trading and hope you’ve enjoyed reading this tutorial. . . * Most Accurate Forex INDICATOR System best Proprietary Algorithms custom fx * MT4 Arrow 2018. ? ? Go to : abestforexindicator. weebly. com to buy this FOREX INDICATOR for $3.99 good 2018. best forex indicator neural networks * Most Accurate Forex INDICATOR System best Proprietary Algorithms custom fx * make money. Go to : ebay. comusrrbtrad1000 to buy FOREX INDICATOR for $3.99. Forex Indicator system works on ALL Currency Pairs and ALL Time Frames . MT4 platform only Pop-up window sound alerts on new signals, if desired ! DOESN'T REPAINT !

YES ! I've finally found a Indicator system that is actually working ! THIS IS THE REAL DEAL Forex Indicator system ! Avoid falling for other fx indicators and EAs which claim to be so profitable, except almost always don't work. This forex indicator is an extremely powerful tool to help you get the edge and help you make consistent accurate trading decisions. Custom made indicator ! ARROWS will only show the direction that is imminent. The rest is up to you to find the take profit and stop loss levels (support resistance). I highly recommend to trade outside of NEWS for your currency pair. News times for each currency can be found on google. Extra arrows help give confirmation in given trend. This Indicator uses PROPRIETARY ALGORITHMS to find when the Moving Averages, MACD and Proprietary Algorithms are best lined up for exemplary trades. This particular kind of Indicator can't be found anywhere else on the internet. Only on my ebay homepage !

You will find that almost all indicators sold on the internet are always losing ! I've spent a lot of dollars on various indicators, just to find that they keep losing ! I've spent a lot of time finding the best combination of PROPRIETARY ALGORITHMS and what I'm selling is the best combination I was able to find ! YES ! I've finally found a Indicator system that is actually working ! You should be able to get many profitable pips per week using your trading strategy with this indicator. The pictured results show the consistency of this indicator to predict strong breakout trends and trend reversals. The results are consistent through all currency pairs and all time frames, throughout at least 1 year of forward testing. Works on 4 and 5 digit brokers. You get 3.ex4 files + 3.mq4 files + 1 template file. tpl + instructions. I advise only 1 trade open at a time with proper money management. Use this tool to give you a better edge in your trading style. These PROPRIETARY ALGORITHMS are designed for ALL currency pairs and ALL time frames . Please keep the Indicators and templates to yourself only and don't share or sell them ! You will receive the files by email without shipping costs.

I check my email every week, so please be patient for up to a week! Reason for selling : I'm seeing if I can get a quick extra income. YES ! I've finally found a Indicator system that is actually working ! This Indicator system is very accurate with very good accuracy ! Buyer agrees to keep Indicators and templates to himselfherself, instead of sharing, distributing or selling the Indicatorstemplates. This Indicator system provides a very stable stream of income ! 15 Pips Forex Scalping System – very accurate trading system for scalping. 15 Pips Forex Scalping System is very accurate trading system for scalping, which is intended to trade on the timeframes M5 and M15. 15 Pips Forex Scalping System consists of only 2 main (ArrowsAndCurves, freescalpingindicator) and one additional (BarTimer) indicators, which makes this strategy is also very simple. Characteristics of 15 Pips Forex Scalping System. Platform: Metatrader4 Currency pairs: Low spread major pairs Trading Time: European and American sessions Timeframe: M5 and higher Recommended broker: Alpari (ecn. mt4 or pro. ecn. mt4 accounts) Rules of trade by 15 Pips Forex Scalping System. Open Buy : Appeared blue up arrow. Free Scalping Indicator displays a green bar. Open the Long position on the next candle. Take Profit 15 pips. Stop Loss is set at the bottom of the green line indicator ArrowsAndCurves.

Open Sell : Appeared red down arrow. Free Scalping Indicator displays a red bar. Open the Short position on the next candle. Take Profit 15 pips. Stop Loss set at the upper of the green line ArrowsAndCurves indicator. Very important! For a successful trade by this strategy as for the most of scalping systems are necessary currency pairs with as low spread, which is available on ecn. mt4 or pro. ecn. mt4 accounts by Alpari. In the archive 15_Pips_Forex_Scalping_System. rar: ArrowsAndCurves. ex4 BarTimer. ex4 freescalpingindicator. ex4 15 Pips Forex Scalping System. tpl. Free Download 15 Pips Forex Scalping System. Probably the Most Accurate Forex Levels system. Probably one of the Most Accurate Forex Levels Indicator for the Metatrader 4 Platform.

Welcome to my Forex Levels Page. If you have traded the forex markets for some time, then you’ll realise how important it is to know where the markets are likely to become active… Where the majority of the Big Dogs are trading. Support Resistance Indicators. There are many support resistance indicators out there that will attempt to identify where the majority of the traders have positions (and I’ve tested most of them), but if you’ve been trading long enough, and you’re reading this, then you’ll probably agree that most of them don’t work that well. This is largely due to the fact they have been incorrectly programmed using generally available information found on the Internet. The other reason why these standard SR Indicators fail a high majority of the time is because every “man and their dog” trader is using them. Large players and Institutions will naturally take advantage of the positions being traded around these areas – they became large players for a reason! Remember, for every winner there has to be a loser. Why keep letting it be you? Sensible Level Indicators. Our Metatrader Four Price Action Level Indicators are quite unique, that’s why they work. They are probably one of the most accurate indicators around!

Many trader’s charts are littered with so many indicators, I’m surprised how they can actually see the price and the real nature of what’s happening in the markets. Remember, most of the successful traders KEEP IT SIMPLE! Keeping it Clean and Simple. We Do Not Use, MACD’s Stochastics, Bollinger Bands, Fibonacci Lines, Fibonacci Fans etc for our decision making, just a relatively good clean unadulterated chart with a few lines. Check out our You Tube Videos: Comments from people who have purchased the Redknight Power Levels recently: Ray Pendle – Jan 2017. I’m using your nice indicator. I’m more a trend-trader, not scalping so much. Good luck with your business. Dusi Ramarao – Feb 2017. Thank you, I’ll surely show my positive feedback wherever you have a presence. Really…………………………Thank u so much ……..thankuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuu.

We do NOT use the standard formulae that most of the other SR Level Indicators are derived from. Our Levels Indicator are tuned to work with all forms of trading strategies, be it a scalper, medium or long term trader. You will receive three indicators in the package: 1X Scalper for 1-5 minute Charts 1X Medium for 15 minute to 1 hour Charts 1X Long Term for 4 hour Charts and Longer. Please note: The Redknight Power Levels Indicator can be installed on up to three Metatrader Platforms. We will contact you within 4 hours of you placing your order for the three Metatrader account numbers you would like to assign to the Indicator. Purchase RedKnight FX Power Levels – ?350. Purchase securely for just ?350.00 through our PayPal shopping cart. IMPORTANT: Please forward to email protected your paypal payment confirmation as soon as you receive it and include your contact details and meta-trader account numbers (maximum of 3 accounts) so that we can prepare the indicators. The trading strategies and systems developed using RedKnighttrading Price Action (RKT) software do not and cannot guarantee that you will make profits, or minimize losses of new or existing market positions. Any trading strategies or systems developed and sold via this website are intended merely as trading examples and none is recommended. Note that results based upon present or historical scenarios do not necessarily compare to any future results of actual trading. No past or present trading record can completely account for any future risk factors present in actual trading. There is no guarantee that any historical trading results will produce comparable actual trading results. On the contrary, there are many known and unknown factors which may contribute to wide deviations between our historical and your actual trading results, such as market liquidity and human emotions. Trading involves substantial risks, including possible loss of principal and other losses.

Our software’s are designed to provide a training tool for trading system enhancement. It is licensed to you with the understanding that its author of the software’s is not engaged in rendering any investment or other professional advice. If investment or other professional advice is required, a licensed professional should be consulted. No one, whether an employee, agent or representative of the author is authorized to provide any such advice, and any such advice, if given, is in violation of the author policy. Use of any software sold via this website or any of its distributors or resellers and of any information posted on this website, is the sole responsibility of the buyer. The author of the Redknighttrading Software’s, its distributors and resellers are not financial advisors, and does not recommend the purchase of any security or advise on the suitability of any trade or investment. Past results are not necessarily indicative of future results and, therefore, it should not be assumed that use of the software’s available for sale or of any information posted on this website will result in trading profits. No claim is made that use of its software can result in trading profits and author of the Redknighttrading software, its distributors, resellers and all individuals associated with this website cannot be held responsible for any trading losses occurred as a result of the use, or inability to use, the software or any other information posted on this website. Any type of trading activity, such as futures, options, currency or stock trading, involves substantial financial risks. Short-term and day trading are only suitable to those having a full understanding of the risks involved and can afford to lose. The 3 Most Accurate Forex Indicators. There are thousands of indicators that are used to find opportunities in the market and profit from them. However, most of them do not give good signals and will get you in the market late. In this article we will present several indicators which are the most accurate and give the biggest trading edge. Indicator #1: The Bollinger Bands.

The Bollinger Bands were developed 20 years ago by John Bollinger, and were designed to show the volatility of the market on the screen in an easy-to-comprehend manner. They give very good signals and can be used as supportresistance indicators, telling us – before the move occurs – that a reversal is prone to happen. When price touches the lower band it is oversold, and when price touches the upper band it is overbought. The trading method for the Bollinger Bands is basically to look for price-action support and resistance levels, and confirm them with bounces on the Bollinger Bands themselves. This results in very high win rate and consistent profits. Indicator #2: The Relative Strength Index (RSI) The Relative Strength Index was developed 30 years ago by J. Welles Wilder, and is considered a powerful trading indicator that also has a predictive edge in the markets. It tells us when the price is overboughtoversold before the trends begin, so we can enter early and have great reward with little risk. The signals it gives are usually very accurate, and if confirmed using the Thomas DeMark mild bounce system it can even reach 70-80% win rate (depending on the timeframe). It is a very accurate indicator that we highly recommend. Indicator #3: Simple Moving Average. The Simple Moving Average, or the SMA, is an interesting indicator that most traders do not use in the right way. Most traders use it as a trend-following indicator to enter trades after a trend has been established, however we use it in an entirely different way. The most accurate and predictive way to use the SMA is in the bounce method: we wait for trend to establish, but instead of randomly entering, we wait for price to retrace to the moving average and bounce off it. Once a reversal signal is given we enter a trade in the direction of the trend with stop loss right below the moving average, thus entering at a tactical point with small stop loss and huge reward.

The 3 indicator described above are the most accurate indicators for trading Forex and stocks, and have proven themselves in countless opportunities. Michael Wells is a trader and author, that focuses on Forex indicator trading and price-action to generate daily trading income. Most Accurate Forex VSD Trading Signal System. Forex vsd system This framework works on the basis of 15 minutes to the 1 hour of the work time. Everyone who is the part of the forex trading can know that there are a lot of the indicators that are actually really work but there are only a few ones who can see and imagine the working of the VSD forex trading in the MT4 indicator. You can get the full information all over the internet as it is so much difficult for us to describe all the information in a single post content but we will try the best of best information guide to share with you. Best Forex vsd system mt4. So be ready from the VSD system functions features: We have built the function for the day traders. In short it is optimized to work on the keygion of the 15 to 60 minutes and the recommended trading way is to trade US crosses only for the better results. It has total of the 8 indicators that are working in generating of the accurate entry and existing points. All traders can now look on the screen for the system which will not repaints.

You can customize the all 8 indicators by setting alert in different codes and colors. This is the trending software earning and trading software packet that are only applicable in the trending. There are many Metatraders indicators such as: VSD VSD_HA VSD_Signal Arrow VSD Buy Sell VSD Vostro. It is the perfect combination of the forex trading that deals and work for the working area in the MT4 indicators along with the many other with the best of the best working criteria. Vostro indicator mt4. It is giving us the opportunity that provides the help guide to detect the all patterns in price and in the dynamic views. How To Install The VSD Forex Scalping. Open the. zip file Copy MT4 and EX4 from the folder in the top of the list Copy the TPL file from the folder Start your metatrader client Move right to select the VSD scalping file You will see the VSD Forex Trading Scalping in the installation drive. You can get the full of the software and all it’s tools with the soft of these keys with the license package from only our site. We are not selling the robotic or automated trading system or functions in any way, as we believe that the function that is working with the most powerful area in the VSD functions are manually runners and can’t be modifies or change without the company exchange written permission. So that we are working with the accurate running system tricks and guideline will be provided through the CD case. We are only offering the software that is enable you to lead the building of the highly personalized , profitable during the VSD trading system in the forex trading world all over the seas in the world but specially in the United States. So stop the thinking work and just make your day by buying this tool just for today from the site. Download Forex power system free.

Forex power system. Get Forex power indicator system most accurate trading strategy. You can use any Currency pairs or gold trading but very power full for eurusd Gbpusd usdchf and usdjpy. This system very usefull for special jpy all pairs. Best session and most accurate signals you can get in uk session. All time farm you can use this but H1 and H4 or Day best for long trading and short trading for 30 pips or 15 pips you can use m15 and m30.Mostly other : Trader sold this system price 500$ but i am sharing this system without any price for help New Trader. You Trad when morning uk session start see terminal when all trend show you same buy or sell then you can enter into market with complete stop loss and take profit this system best for long term trading. This strategy have 60 indicatores and one templete . Now i show you some picture. You can downloading Indicator and template file. The 3 Most Accurate Forex Indicators. There are thousands of indicators that are used to find opportunities in the market and profit from them. However, most of them do not give good signals and will get you in the market late. In this article we will present several indicators which are the most accurate and give the biggest trading edge.

Indicator #1: The Bollinger Bands. The Bollinger Bands were developed 20 years ago by John Bollinger, and were designed to show the volatility of the market on the screen in an easy-to-comprehend manner. They give very good signals and can be used as supportresistance indicators, telling us – before the move occurs – that a reversal is prone to happen. When price touches the lower band it is oversold, and when price touches the upper band it is overbought. The trading method for the Bollinger Bands is basically to look for price-action support and resistance levels, and confirm them with bounces on the Bollinger Bands themselves. This results in very high win rate and consistent profits. Indicator #2: The Relative Strength Index (RSI) The Relative Strength Index was developed 30 years ago by J. Welles Wilder, and is considered a powerful trading indicator that also has a predictive edge in the markets. It tells us when the price is overboughtoversold before the trends begin, so we can enter early and have great reward with little risk. The signals it gives are usually very accurate, and if confirmed using the Thomas DeMark mild bounce system it can even reach 70-80% win rate (depending on the timeframe).

It is a very accurate indicator that we highly recommend. Indicator #3: Simple Moving Average. The Simple Moving Average, or the SMA, is an interesting indicator that most traders do not use in the right way. Most traders use it as a trend-following indicator to enter trades after a trend has been established, however we use it in an entirely different way. The most accurate and predictive way to use the SMA is in the bounce method: we wait for trend to establish, but instead of randomly entering, we wait for price to retrace to the moving average and bounce off it. Once a reversal signal is given we enter a trade in the direction of the trend with stop loss right below the moving average, thus entering at a tactical point with small stop loss and huge reward. The 3 indicator described above are the most accurate indicators for trading Forex and stocks, and have proven themselves in countless opportunities. Michael Wells is a trader and author, that focuses on Forex indicator trading and price-action to generate daily trading income. The Most Reliable Indicator You've Never Heard Of. John R. McGinley is a Certified Market Technician, former editor of the Market Technicians Assn. Journal of Technical Analysis and inventor of the McGinley Dynamic. Working within the context of moving averages throughout the 1990s, McGinley sought to invent a responsive indicator that would automatically be more responsive to the raw data than simple or exponential moving averages. SMA Vs. EMA Simple moving averages (SMA) smooth out price action by calculating past closing prices and dividing by the number of periods. To calculate a 10-day simple moving average, add the closing prices of the last 10 days and divide by 10. The smoother the moving average, the slower it reacts to prices.

A 50-day moving average moves slower than a 10-day moving average. A 10- and 20-day moving average can at times experience a volatility of prices that can make it harder to interpret price action. False signals may occur during these periods, creating losses because prices may get too far ahead of the market. An exponential moving average (EMA) responds to prices much more quickly than a simple moving average. This is because the EMA gives more weight to the latest data rather than the older data. It's a good indicator for the short term and a great method to catch short term trends which is why traders use both simple and exponential moving averages simultaneously for entry and exits. Nevertheless it too can leave the data behind. The Problem with Moving Averages In his research of moving averages which went much further than the basic examples already shown, McGinley found moving averages had many problems. The first problem was they were inappropriately applied.

Moving averages in different periods operate with varying degrees in different markets. For example, how can one know when to use a 10-day to a 20- to a 50-day moving average in a fast or slow market. In order to solve the problem of choosing the length of the moving average that applies to the current market, the McGinley Dynamic automatically adjusts itself to the speed of the market. McGinley believes moving averages should only be used as a smoothing mechanism rather than a trading system or signal generator. It is a monitor of trend. But a 10-day simple moving average is off by five days or half its length. Chances are good that the big move in prices already occurred by the fifth day of a 10-day simple moving average. In addition, a 10-day moving average should properly be plotted five days before the present datum. Further, McGinley found moving averages failed to follow prices since large separations frequently exist between prices and moving average lines. McGinley sought to eliminate these problems by inventing an indicator that would hug prices more closely, avoid price separation and whipsaws and would follow prices automatically in fast or slow markets. McGinley Dynamic This he did with the invention of the McGinley Dynamic.

The formula is: MD = MD -1 + (Index – MD -1 ) (N * (Index MD -1 ) 4 ) The McGinley Dynamic looks like a moving average line yet it is a smoothing mechanism for prices that turns out to track far better than any moving average. It minimizes price separation, price whipsaws and hugs prices much more closely. And it does this automatically as this is a factor of the formula. Because of the calculation, the Dynamic Line speeds up in down markets as it follows prices yet moves more slowly in up markets. One wants to be quick to sell in a down market, yet ride an up market as long as possible. The constant N determines how closely the Dynamic tracks the index or stock. If one is emulating a 20-day moving average, for instance, use an N value half that of the moving average or in this case 10. It greatly avoids whipsaws because the Dynamic Line automatically follows prices in any market fast or slow, it's like a steering mechanism that stays aligned to prices when markets speed up or slows down. It can be relied upon for trading decisions yet McGinley invented the Dynamic in 1997 as a market tool rather than as a trading indicator. Conclusion Whether it is called a tool or indicator, the McGinley Dynamic is quite a fascinating instrument invented by a market technician that has followed and studied markets and indicators for nearly 40 years. For more information on indicators and market tools, take a look at our Technical Analysis Tutorial .



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