Double Dragon Indicator For MT4
Table Of Contents:
- Double Dragon Indicator For MT4
- Parameters of the Double Dragon Indicator For MT4
- Some of the Advantages of Using the Double Dragon Indicator For MT4
- Some of the Disadvantages and Limitations of using the Double Dragon Indicator For MT4
The Double Dragon Indicator For MT4 is an indicator that is comprised of two different Commodity Channel Index indicators. Both of these CCI indicators combined together can tell the trader when there is a strong price trend in place, entry signals and alert the trader to divergence trading opportunities
Partially Automated Trading Besides Your Day Job
Alerts In Real-Time When Divergences Occur
Parameters of the Double Dragon Indicator For MT4
CCI1: This parameter is can be used by the trader to determine the period of the first Commodity Channel index indicator is.
CCI2: The trader can use this parameter to set the value of the second CCI indicator.
Some of the Advantages of Using the Double Dragon Indicator For MT4
An important advantage of using the Double Dragon Indicator For MT4 is that it can help the trader to spot the periods in the market when there is a strong trend in place.
This means that the trader who uses the Double Dragon Indicator For MT4 would be able to watch the signal lines of the indicator to spot the periods in his or her charts when there is an increase in the strength of the present trend.
This can easily be achieved by the trader in a few steps. First, the trader needs to add in level 20 and level 80 to the indicator's subwindow. The trader would find this by going to the indicator list, then to settings and then to levels.
After the trader has added the levels, he or she can then watch for the prices where one or both signal lines of the indicator cross either above or below these levels.
A cross above the 80% level by one or both signal lines in the indicator subwindow should tell the trader that a strong buy trend is in place and when the signal lines cross back below this level, the buy signal is over.
In the same way, across below the 20% level by one or both of the signal lines of the Double Dragon Indicator For MT4's signal lines should indicate to the trader that a sell trade is in place and when the signal line or lines cross back above the 20% level, the sell signal is over.
Another advantage of using the Double Dragon Indicator For MT4 is that it can help the trade to identify when there is an increase in the momentum of a trend during the active market sessions.
This means that having the Double Dragon Indicator For MT4 on a trader's chart can tall him exactly when the market begins to move faster or slows down. This is because the CCI indicator used to build the Double Dragon Indicator For MT4 is very sensitive to the price and as a result, they easily react to a slight increase or decrease in volatility on any chart they are on.
The Double Dragon Indicator For MT4 consists of two CCI indicators - the faster and the slower ones. Depending on how both of these CCI indicators interact with themselves, they can either indicate a faster momentum in the price or slower price momentum.
Another advantage of using the Double Dragon Indicator For MT4 is that the interaction of its CCI indicators with themselves can also be used by the trader as direct entry signals.
This means that the trader can derive when to buy and when to sell from watching how the signal CCI lines of the Double Dragon Indicator For MT4 cross themselves in the market.
When the faster CCI signal line crosses the slower CCi signal line from below, a new buy signal is generated on the currency pair or trading asset that the indicator is attached to.
Also, when the faster CCI signal line crosses the slower CCI signal line from above, a new sell signal is generated on the currency pair or trading asset the Double Dragon Indicator For MT4 is used on.
Another very important advantage of using the Double Dragon Indicator For MT4 is that it can easily be combined to any trader's already existing system or used as a stand-alone trading system.
This means that a trader can decide to use the Double Dragon Indicator For MT4 as a trading system, using the trading signals it generates as buy and sell signals. Another trader who already has a trading strategy can also use the Double Dragon Indicator For MT4 as an add-on to his or her strategy for spotting entries in any market.
Another advantage of using the Double Dragon Indicator For MT4 is that it can be used by the trader to spot when there are divergence trading opportunities in the price of any currency pair or trading asset the indicator is attached to.
This means that the trader would be able to use the Double Dragon Indicator For MT4 to spot divergence trading opportunities. This is because it is easy for the trader to spot the periods when the signal lines are diverging from the price in terms of highs and lows being created.
When the price is creating a higher high and the Double Dragon Indicator For MT4's signal lines are creating lower highs, a divergence sell signal is created.
Also, when the price is creating a lower low and the signal lines of the Double Dragon Indicator For MT4 are creating a higher low, a buying divergence signal is created.
Some of the Disadvantages and Limitations of using the Double Dragon Indicator For MT4
One major disadvantage of using the Double Dragon Indicator For MT4 is that it is prone to market noise on the lower timeframes of the trader's charts. As a result of this, traders might want to stick to using it on the higher timeframes as this can offer the trader much more accuracy in terms of picking trade setups and making trading decisions.
Another disadvantage of using the Double Dragon Indicator For MT4 is that at certain times in the market, the signal lines might be too sensitive to the price movements and can give the trader false signals because of this. Hence, the trader should manage their risk per trade properly.
