J_TPO_OSC Indicator for Meta Trader 4
The J_TPO_OSC Indicator for Meta Trader 4 is a very dynamic indicator with vast functionality for the Meta Trader 4 trading system. For instance, it can spot ranges, offer entries in both directions of the market and help the trader with excellent profit taking signals so that the trader doesn't leave a lot of money on the table.
Some Advantages and Disadvantages of using the J_TPO_OSC Indicator for Meta Trader 4
The J_TPO_OSC Indicator for Meta Trader 4 helps the trader to identify times in the market when the price of the currency pair or trading asset is ranging with no clear direction in mind. It does this by identifying very low volatility periods in price action and once it spots this price behavior, it doesn't give off any trade signals, thereby keeping the trader who trades with the indicator away from entering trades during such periods.
Another benefit of using the J_TPO_OSC Indicator for Meta Trader 4 is that it offers the trader entry opportunities to both sides of the market. This means that the trader can decide to make trades both in the direction of the larger trend and against the direction of the larger trend. This is a rather aggressive approach and is not suitable for all traders. A more conservative approach for more risk-averse traders is to take only signals generated by the J_TPO_OSC Indicator for Meta Trader 4 in the direction of the larger trend. This will enable such a trader to remain entirely on the side of the trend and potentially catch big runs in the price of a currency or trading asset that may continue for several hours or even days.
The J_TPO_OSC Indicator for Meta Trader 4 is very useful because of the kind of exit signals it generates. It helps the trader using it to exit trades once they start to show signs of changing direction. The J_TPO_OSC Indicator for Meta Trader 4 consists of a histogram and a signal line. It generates all its trading signals for the trader using these two signal lines. The histogram displays a bright red color when the market is trending down and bright green color when the market is trending up. This immediately lets the trader understand the immediate direction of the market on the timeframe the trader is working from.
The signal line oscillates between the top and bottom of the indicator's window on the Meta Trader 4 chart. The signal line gives off the early exit or profit taking the opportunity to the trader since it reacts very quickly to price action. Hence, the trader can immediately look at the direction of this signal line and know if the price has changed Direction or if has continued to move in the same direction.
The downside to using the fast-moving signal line for taking profits is that it may be too quick to allow a trader make a lot of profits from any trends as it would easily react to any slight retracements in price thereby making the trader watching it to immediately cut his position or current trade in the market.
A trader who decides to use the more stable histogram for both entries and exits both in the direction of the trend and in the opposite direction can gain more profits as following the histogram can keep a trader within the trend a sling as it continues and signal an exit as soon as the trend changes direction. The drawback to using the much slower histogram is also that the trader might have to sacrifice some profits in order to be able to ride the trend until it ends or changes direction.
When trading with the J_TPO_OSC Indicator for Meta Trader 4, a trader who watches its moving average as it makes highs and lows following the highs and lows of price can quickly spot divergence opportunities where the price of a currency pair or trading asset is getting weaker and then be able to take trades in the opposite direction to the current direction of price. Spotting divergences and combining them with price action analysis like range breakouts and trend line breaks can be an excellent opportunity for traders to make some real profits in the market.
However, the J_TPO_OSC Indicator for Meta Trader 4 is not really suited to beginner traders but rather, to traders who have a certain level of experience and expertise in the markets. This means that using the indicator may confuse a beginner trader at very critical times when the trader would need to take major decisions like whether to cut trade to protect their account or to take a trade to make some profits. The more advanced or skilled trader would find that using the indicator is more attuned to them since it already has a level of exposure to the markets and understands certain basic principles that operate around price action.
The beginner trader can, however, decide to learn how to use this indicator given that the learning curve is not so steep. This means that a beginner trader who wishes to trade using the J_TPO_OSC Indicator for Meta Trader 4 can take out a short period of time and perhaps, a demo account where he or she can first put up the indicator and watch how it react to price. This can be done on a lower timeframe chart like the one minute or 5-minute charts at first so that the beginner trader can quickly learn how the indicator creates its signals and how or when a trader should respond to them, including how much they can or should risk on each individual trade.
Working with the demo account would then equip them with some real knowledge of how price action works and how this indicator reacts to price action before they can then move up to a real trading account and use a higher timeframe chart to take signals from the indicator as higher timeframe signals are usually more stable and reliable than lower timeframe signals.
The beginner trader must also develop and practice a very strict money management strategy as this will help them to avoid losing their trading accounts in a short time.