Arrow indicators in the Forex market - is there any benefit from them?
The active development of algorithms mic trade on forex did not cancel manual trade by indicator signals. Many of us still enter the market after the visual analysis of curves on graphics, histograms in the cellar, the moments of crossings of curves, turns in zones of overbought/oversold or change of color of columns of histograms.
There 's nothing complicated about trusting these signals to an adviser, as they say, to everyone their own. However, it is always possible to make the process of visual-manual trade psychologically more comfortable, more precisely and to ensure compliance with the discipline of transactions.
Today 's material will talk about a series of indicators that complement the signals with arrows that indicate the place and direction of entry. Let 's see if you can benefit the ordinary currency speculator from the arrow indicators.
Why do I need arrow indicators on Forex?
This material is aimed at "hand traders," most of whom are deatreaders, meaning they make deals inside the day.
Currency pairs are a rather volatile tool that causes high emotional and physical stress, leading to a dissipation of attention, especially on economic news-rich days. At such moments, the trader may miss the signal of one of the filter indicators, but the arrow on the graph cannot be overlooked.
Forex arrows will reduce the number of input passes, which is very important for intraday strategy, where mathematical expectation is low enough and spread costs are high.
Starting trader arrows will help to better understand the mechanism of generation of signals of the trading system during step-by-step testing. Emerging icons with a direction of entry will allow you to check the indicators in the Strategy Tester in Quick Render mode.
RSI has become the basis of many strategies; Methods of using this oscillator are devoted to a separate article on our website. The RSX-arrows trading system is an attempt to use an indicator curve in reference to a common crossover strategy: trading by Moving Average (MA) crossing signals.
RSX-arrows developers added a smaller period moving average to the RSI, giving it the role of a fast signal line, while achieving the benefits of:
1. Transformation of the counter-trending strategy of inputs at overbought/resale zones into a trend deal at sliding and RSI crossings;
2. Solutions to the problem of cross-over signal lag.
Operating principle of the switch indicator
After the candle is formed and closed, an arrow appears on the graph - its direction and color will indicate the type of transaction. The trader must manually open the market warrants:
Buy - in the upward direction of the arrow;
Sell - with a down arrow.
The trading system is reverse, meaning the opposite position will both be a new entry and closure of the previous warrant in plus or minus. This configuration does not include pre-set stop-loss and take-profit.