RAVI FX Fisher Indicator For MT4
Table Of Contents:
- RAVI FX Fisher Indicator For MT4
- Some of the Major Advantages of using the RAVI FX Fisher Indicator For MT4
The RAVI FX Fisher Indicator For MT4 is an indicator that was built for traders who use the Meta Trader 4 charting platform to do their day to day currency pair charting, their technical analysis and then, to make trading decisions during the trading day.
The indicator is built based on the Moving Average indicator and can help a trader to identify profitable market entries during the trading day.
The trader can also derive a lot of insights from using the RAVI FX Fisher Indicator For MT4 to make trading decisions every single trading day and some of these valuable insights and advantages are outlined and extensively discussed below.
Some of the Major Advantages of using the RAVI FX Fisher Indicator For MT4
One of the major advantages of using the RAVI FX Fisher Indicator For MT4 is that the trader can use it to spot very profitable entries into a trend. This means that the indicator can make it easy for the trader to visually identify when a market trend is forming and to take advantage of such a market trend before it ends or before it reverses in a new direction.
This is true since the indicator makes it visually possible for the trader to spot these kinds of moves as soon as they begin to occur or as soon as a new trend starts at the price. The RAVI FX Fisher Indicator For MT4 prints a pale green histogram in order to let a trader know when the right time for a trader to get into a trade is.
This histogram consists of the histogram bars and a zero line. The histogram bars are what helps to tell the trader whether he should enter a trade or not and whether he should be buying or should be selling. It does it by printing either above or below the signal line for the trader to then interpret the trading signal and choose to take a trade with it or not.
Whenever the indicator prints above the signal line, the histogram lines immediately tell the trader that a new buy is in place and whenever the histogram prints below the zero line, this immediately tells the trader that a sell trade is in play. This way, it is very easy for the trader to spot very profitable trading signals in the direction of the general trend in the market.
Another major advantage of using the RAVI FX Fisher Indicator For MT4 is that it can help the trader to spot divergence opportunities in the markets on whatever currency pair or trading asset that the trader is working on at the moment.
This means that when a trader carefully watches the indicator, he or she can immediately be able to spot when there is a divergence between the signals that are being produced by the indicator's histogram bars and the price action.
This is very possible because, normally, the price action moves in tandem with the bars produced by the RAVI FX Fisher Indicator For MT4. This means that highs and lows in the price and those produced by the indicator's bars are relatively similar in nature.
When a trader, for instance, watches the way the price action interacts with the histogram bars created by the indicator, it is immediately easy to discover that whenever the price makes a higher high, the indicator also makes a higher high and when the price makes a lower low, the indicator produces histogram bars that also make a similar lower low in the indicator's sub window.
The divergence comes into play when the highs and low being produced by the price does not look very similar any more to the highs and lows being produced by the indicator's histogram bars. This can mean, for instance, that price produces a higher high and the indicator then produces a lower high instead of a higher high like the price action. This is called a divergence opportunity and can be very profitable when traded properly.
A trader should buy when there is a bullish divergence and sell when there is a bearish divergence. A bullish divergence is formed when the price creates a higher high but the indicator does not create a higher high as well with its histogram's bars and creates a lower high instead.
This would be an instant opportunity for the trader to sell or to start looking for selling opportunities with other indicator or signal providers. A bearish divergence is formed when the price forms a lower low but the indicator's histogram bars form a higher low instead of forming a lower low as the price action did.
This would present the trader with a very profitable opportunity to either enter a very quick sell trade or to start looking out for opportunities to sell or take sell trades depending on other indicators and signal providers used by the trader.
Whenever a trader spots any of these divergence trading opportunities, it is then very important for the trader to quickly place a trade in the direction of the trading divergence or to start to look out for other opportunities to trade in the direction of the divergence using other indicator or signal providers that might be employed by the trader.
The divergence opportunities can occur on any timeframes and currency pairs, however, the higher timeframes are usually favored for these kinds of setups for two major reasons. The first major reason is that there are lesser false signals on the higher timeframes than there are on the lower timeframes and the trader is more likely to find much more stable signals on the higher timeframes than on the lower timeframes.
The second major reason is that when the trader uses the higher timeframes, it gives the trader more opportunities to take trades as the trader can very easily go down to the much lower timeframes to seek trades in the direction of the divergence. Also, higher timeframe divergence moves usually present opportunities to capture larger amounts of pips than lower timeframe divergence opportunities.