JoeChalhoub Forecaster Indicator for MT4
The JoeChalhoub Forecaster Indicator for MT4 is a Moving Average Oscillator based indicator for the Meta Trader 4 platform that primarily helps traders to spot divergence across price as it happens in real time, highlight the divergence and offer traders entry signals to trade the new trend. A lot of benefits can be derived from using this indicator.
Advantages and Disadvantages of using the JoeChalhoub Forecaster Indicator for MT4
One of the first advantages of using JoeChalhoub Forecaster Indicator for MT4 to the trader is that it can forecast price action. This implies that when a trader uses the indicator, the trader can get a clue as to where price action will go in the near future using the signals given by the JoeChalhoub Forecaster Indicator for MT4. This quickly allows the trader to plan his trades and how much of his or her account he or she would want to risk in the coming trade using the signals from the indicator.
This can clearly help the trader to spot the very long term trend from the much larger time frames and then, take only trades that align with the direction of the long term trend in the lower time frames. This helps the trader to maintain the right direction when he or she is trading in the markets.
Another advantage to using the JoeChalhoub Forecaster Indicator for MT4 is that the indicator helps a trader spot divergence across price action. Since when this indicator is used on a currency pair or trading asset, the indicator oscillates with the price movements printing higher highs as price makes higher highs and lower lows as price makes lower lows, once there is a divergence in the difference between the JoeChalhoub Forecaster Indicator for MT4 and the price of the trading asset that the trader is currently on, it can then be a signal to tell the trader that price may soon be changing direction or may not move a lot more in its current direction with boldness. This weakness in price can help the trader then anticipate the reversal and enter a trade accordingly.
The JoeChalhoub Forecaster Indicator for MT4 helps the trader to find a proper entry to a trend. Once a new trend starts, most traders want to get in as soon as possible and often look for indicators that can help them to get into the trend as early as possible. This usually comes with the risk of entering a trend prematurely or entering a mere retracement and the trader having to watch price move against him or her. This can be really frustrating.
The JoeChalhoub Forecaster Indicator for MT4 helps the trader understand when a new trend has started and also lets the trader know when the right time to get on the trade is. The trader can now get into the trade with the confidence that the odds of price moving against him or she is much smaller than if he or she got in earlier. This helps the trader to ride trends properly.
The same way the JoeChalhoub Forecaster Indicator for MT4 helps the trader to spot entries is also the same way it helps the trader using it to spot exits from a trend. Usually, the JoeChalhoub Forecaster Indicator for MT4 creates 2 exits from a trend. The first exit is usually the faster exit and can help the trader to take off some profits from an already profitable trade. This can happen several times during an active trend depending on the trader's discretion.
The second exit happens when the trend is totally over and usually happens only once or twice during an active trend. This is usually the time when the trader should talk off all of his or her active position in the market. To stay in an entire trend, the trader would have to sacrifice some profits to follow the second exit as the JoeChalhoub Forecaster Indicator for MT4 will usually ensure the trend is over completely before signaling this second type of exit to the trader.
The JoeChalhoub Forecaster Indicator for MT4 is made up of two different oscillators that help give signals to the trader depending on their height and positions in the subwindow on the Meta Trader 4 trading chart. The first oscillator has a light purple color and is the faster oscillator that gives off early entries and exits while the see oscillator has a dark blue color. This is the slower oscillator and it helps traders to stay in a trend by staying put during retracements until a real reversal occurs. Depending on the position of the two oscillators either above the zero line or below the zero line, the trader will either be going long or going short.
When the faster oscillator goes above the zero lines with the second slower oscillator still below the zero lines, it is a signal to the trader that a new uptrend might be starting. When the slower oscillator then joins the faster oscillator above the zero lines, it is a signal to the trader to buy. The converse is also the case as when the faster oscillator leaves the slower oscillator above the zero lines and crosses below, the trader needs to be wary as the new trend might be developing. When the trader then sees that the slower oscillator has joined the faster light purple oscillator below the zero lines, it becomes a definite signal to sell.
Also, both oscillators expand and contract to visually allow the trader to appreciate when there is momentum in price and when the price of a currency pair or trading asset is gradually losing momentum. This will then help the trader to start to take some profits before the market eventually changes direction against the trader. Using the oscillations of the master oscillator, the trader can get in multiple times, for instance, in a buy where the slower oscillator is already above the zero lines each time that the faster oscillator goes below the zero lines and comes back up above the serious line.