3 Stochastics-in-one Indicator for Meta Trader 4
The 3 Stochastics-in-one Indicator for Meta Trader 4 is a complete trading system based on the Meta Trader 4 charting platform and comprised of a Stochastics Indicator, 3 different levels of Support and Resistance at every point in the price, Heiken Ashi Indicator, Exponential Moving Average indicator and Pivots indicator. All these indicators have a crucial role to play in the making of trade signals in the system. Traders who use this trading system can derive a lot of insights from using it and some of these insights are discussed below.
Some Benefits and Demerits of using the 3 Stochastics-in-one Indicator for Meta Trader 4
One of the first major insights a trader can derive from using the 3 Stochastics-in-one Indicator for Meta Trader 4 system is that it tells the trader as accurately as possible where the entries into powerful trends in the markets are. This is a core part of what traders can benefit from using the indicator. This also means that all the trading that a trader will be involved in when using the system will be automatically generated as the system has its own particular entry requirements.
The system uses the Pivots indicator to spot excellent support and resistance zones in the market where traders will often find that price reacts to during the trading day. This implies that these levels that are automatically spotted by the system's Pivot indicator will form excellent reaction points within the trading day and traders who use the system would need to be aware of these levels as they trade using the system. This also means that traders can place potential orders like pending or stop orders at these levels in anticipation of price reactions from these levels.
Another very important component of the 3 Stochastics-in-one Indicator for Meta Trader 4 is the Exponential Moving Average indicator. The EMA has two primary functions in this trading system. One of these functions is that the EMA is used by the trader to watch for the general trend in the system. This means that traders can use the EMA as the quick look direction indicator for the trend direction before they take any trades as they will need to make sure that their trades are aligned in the direction of the EMA on the chart.
The second function of the EMA is that it serves for re-entry signals as traders can look to them for price bounces. This means that a trader can take trades in the direction of the EMA when the trades come up or down to meet the EMA signal line.
Another very important component of the 3 Stochastics-in-one Indicator for Meta Trader 4 is the Heiken Ashi indicator. This indicator is used by traders around the world because of its ability to smoothen out price action. This means that this indicator can draw candles in line with the trend so that traders can stay in the trend regardless of what the regular candlesticks are doing. This way, the Trader can always take trades in the correct direction and stay in those trends for as long as possible or until the trend ends. This also means that the trader can then watch the price action and wait for it to go back and reach the EMA line before any trade is then taken in the direction of the trend.
This would be a very good way to take trades in the direction of the trend. Also, the EMA can guide the trader during the trend. This means that the trader using this system can watch the EMA when he or she is already in a trade so that he or she can know exactly when the trend has changed against his or her trade. This will immediately help the Trader to know when he or she should exit the trend and take a new trade in the new direction of the trend. Hence, when the trader places a new trade, the Trader can watch the EMA for when he or she can move his stop-loss order in the direction of the trend and protect his or her profits in the trade.
The 3 Stochastics-in-one Indicator for Meta Trader 4 also provides the trader with visual indications point out when the trader can take a trade and it does this by printing arrows on the trader's chart so that the trader can know exactly when it is time to take trades and follow the actual trend direction being pointed out on the chart. The Trader would also need to make sure that there is a percentage allotted to each trade that he or she takes and that the trade doesn't exceed this percentage if it goes into a loss. This way, the Trader can effectively manage his loses and not blow up their accounts.
The 3 Stochastics-in-one Indicator for Meta Trader 4 is useful to the trader in detecting price divergences when it is used on the chart the trader is working on since it can move in a separate way from price and then highlight an occurring divergence for the trader to spot. The trader without this indicator would just see the price as a combination of different highs and lows that reverse at will whereas the trader that uses this indicator will realize that there is an actual definition to the way these highs and lows are being formed by price.
This means that the trader will immediately see that the highs and lows comprise of fake and real highs and fake and real lows and that price action usually creates these fake highs or fake lows to confuse beginner traders into either buying or selling, whereas the true intentions of price are to move to the very opposite direction to such highs or lows. Divergence is typically spotted through the indicator when the price makes a higher high and the indicator makes a lower high instead of a higher high. This difference between the peaks of the indicator and of price can then be spotted and traded by different traders.