Doda-EMA Indicator For MT4
The exponential moving average is one of the most effective ways to find the dynamic trading zone. Some of the pro scalpers often use the 21 and 7 days EMA crossover to scalp the market. But relying on the EMA is a little bit hard since you have to deal with exponential data. To avoid this issue, you can use the Doda-EMA Indicator For MT4. You don’t have to look for any bearish or bullish crossover to trade the key levels. Even with a basic understanding of this market, you can trade like institutional investors.
The new traders might get relaxed by knowing the amazing use of Doda-EMA Indicator For MT4, but there is a twist. We should not consider the signals of the Doda-EMA Indicator For MT4 as our prime signals. Unless we rely on other technical parameters, chances are very high, we will lose a decent portion of our investment. You have to create a support and resistance level trading strategy to find our best trading zone. Once you feel comfortable with the trading technique, starting assessing the signals of the indicator to filter perfect trades.
The Doda-EMA Indicator For MT4 acts more like an advanced EA. Those who are new to this profession, might not know the details of EAs. EAs are expert advisors, which creates signal by analyzing essential variables in the backend. The naïve traders often buy expensive EAs to trade and eventually fails. On the other hand, the Doda-EMA Indicator For MT4 is a free indicator and by following some simple technique, you can ensure quality trade execution. The Doda-EMA Indicator For MT4 is more than some of the advanced EAs available in the market. Let's see how we can use this advanced indicator and inclines our strategy with our strategy.
Waiting for the short trade
An example is the best way to learn something new. Think about the theoretical and practical knowledge in our life. You may know something very well by reading the theory books but in practical life, an experienced person is going to beat you. But if you read books and focus on practical exercise, you have a great chance to do well. Without taking things further, let’s see how experienced traders find the potential short trading zone with Doda-EMA Indicator For MT4.
Figure: Waiting for a short trade based on Doda-EMA Indicator For MT4
On the right side of the price chart, you can see two specific parameters. These are “EMA: Go short @0.6839 and EMA: Exit long @ 0.6862. If notice the blue region in the price chart, you will be surprised to see the Doda-EMA Indicator For MT4 perfectly spotted the short trading zone. The blue shaded region is our critical resistance and rejection of the price will help us to go short. On the contrary, we also know the 0.6862 is the price to close our long trade. Unless the signal matches the key support or resistance point, we should never trade.
Trading the trend
The Doda-EMA Indicator For MT4 works best when you trade the market with the trend. If you intend to trade against the market movement, you should have strong fundamental knowledge. You need to have strong news data which support the idea of a trend reversal. Once you have such news, focus on the key technical parameters. Does the market testing a key level or is going to break a major zone. A valid break is required in the daily chart or else we should never use the Doda-EMA Indicator For MT4 signals to counter trade the trend.
Use advance money management technique
The Doda-EMA Indicator For MT4 works on the principle of EMA. Since the prominent EMAs are 7,14 and 21, we need to be careful with our risk profile. By taking too much risk on a certain trade, we can lose a big amount of money. Most importantly, this Doda-EMA Indicator For MT4 will generate a good number of trades in a different time frame. And if we trade all the readings, we must use the advance money management technique. For instance, if you lose 2 trades in a row, we can’t execute any trade for the rest of the day. This is just an example. You have to define your risk profile based on the success rate. Try to come up with an advance money management plan to secure your investment.
Avoid trading the news
EMA values can change without any prior notice. Those who are using the Doda-EMA Indicator For MT4 knows how the complexities associated with an extremely volatile market. Due to frequent change in the signals in a smaller time frame, the short time frame trader loses many trades. To avoid such a problem, you have to find the key reason behind the sudden increase in market volatility. The major economic news release is the most prominent factors. Know about the timing of different news and avoid placing any trade. Always try to trade the market when the price movement is stable. Never trade this market during press conference since it causes wild spikes and we will not get any accurate reading from the Doda-EMA Indicator For MT4.
Trips and tricks
To become a profitable investor, you have to think outside the box. Blindly following the signals of Doda-EMA Indicator For MT4 is not going to help. If you intend to trade the lower time frame, try to use a chart candlestick pattern. On the contrary, if prefer position trading system, use the major chart pattern to improve your win rate. Though the Doda-EMA Indicator For MT4 gives you an indicator about the order type, still you have to focus on other trading strategies. You must have a balanced trading system to find trades. The indicator reading will act as your confirmation tool. If you feel confused with the technical parameters and indicator reading, avoid placing any trade. And try to use trailing stops since it helps you to gain a huge profit.