MDAC indicator by Elder Indicator For MT4
Table Of Contents:
- MDAC indicator by Elder Indicator For MT4
- Blue, red and green bar
- How to trade the key levels
- Dealing with low-level volatility
- Managing the risk
- Trips and tricks
The MDAC indicator by Elder Indicator For MT4 is most used to find the trend reversal in the market. The naïve investors often think trend reversal indicators can only be used to trade the newly formed market trend. But in an uptrend, the small bearish retracement is also referred to as trade change. The MDAC indicator by Elder Indicator For MT4 considers the bearish retracement as a downtrend. You can also use the MDAC indicator by Elder Indicator For MT4 to find the endpoint of a retracement.
Partially Automated Trading Besides Your Day Job
Alerts In Real-Time When Divergences Occur
By mastering the trading technique of MDAC indicator by Elder Indicator For MT4, you can find perfect signals. First of all, try to find the overall market trend. If the overall market trend is bullish, use the MDAC indicator by Elder Indicator For MT4 to calculate the endpoint of a bearish retracement. Things might be a little bit easy at the initial stage but once you master the technique of MDAC indicator by Elder Indicator For MT4, you can execute the best possible trades with a high level of accuracy.
Blue, red and green bar
There are three basic readings in the MDAC indicator by Elder Indicator For MT4. An imminent change in the trend is shown by the blue bar. So, if you have a green bar followed by the blue bar, we can assume, the market is going for a bullish ride. On the other hand, the red bar followed by blue indicators sellers has gained control. Let’s focus on a trade example. Consider the GBPJPY is in a bearish trend. So, the reading in the MDAC indicator by Elder Indicator For MT4 will be red. After a while, you have noticed a blue bar and this is a clear indicator, the bulls are slowly losing control. Right after the break of the critical support level, you have noticed a red bar followed by the blue bar. So, this sequential color change in the histogram of MDAC indicator by Elder Indicator For MT4 indicators, the bearish trend has established its ground.
How to trade the key levels
Knowing the details of the indicator is not enough. You have to think like the professional traders find the support and resistance zone. Indicators will act as your helping tools. Unless you find the key trading zone, you can’t rely on the MDAC indicator by Elder Indicator For MT4. For instance, if you trade the 1 minute time frame based on blue, green and red bars of the histogram, you may lose all the trades. So, how do we trade the major levels in the Forex market? Let’s learn the proper technique.
Figure: Executing long trades by using the histogram reading
The new traders will get confused by seeing the change in the color of the histogram. But if you notice, you will find a strong similarity between the price movement and change in the color of the histogram. The first shaded region in the MDAC indicator by Elder Indicator For MT4 is right on the blue bar. If you go through this article, you know the blue bar indicates an imminent trend change. Look at the chart and you will notice the market was in bearish trend before the formation of the blue bar. Followed by the blue bar we have few green bars (on the negative side of the histogram, shaded with yellow color) in the histogram, and it suggests the bulls are slowly gaining control of this market. Once you spot a green bar on the positive side of the histogram, look for a bullish candlestick to execute long order just like the above illustration. Follow this process and make a consistent profit based on the reading of MDAC indicator by Elder Indicator For MT4.
Dealing with low-level volatility
The MDAC indicator by Elder Indicator For MT4 works really good in the volatile market. If you intend to trade a low volatile market, the bars in the histogram will not give you accurate data. For this reason, some of the advanced traders often use the cross pair to find their trades. But cross pair trading is extremely risky since the market often exhibits false spike and hunts the stops. The best way to avoid such hassle is to use the price action signals. Before you focus on the cross pair, open a demo account and test the new strategy. Unless you are satisfied with your practice session, never trade the real market.
Managing the risk
Learning the perfect use of the MDAC indicator by Elder Indicator For MT4 is not enough. You must concentrate on money management skills. Majority of the new investors lose trades since they don’t know the perfect way to reduce the risk factors in trading. In most cases, they become emotional after winning a few trades. Eventually, they start taking high-risk trade and lose all the money. Being a beginner, you should not risk more than any amount which you can’t afford to lose. Take your time and try to develop your skills in money management policy.
Trips and tricks
The MDAC indicator by Elder Indicator For MT4 works best in the higher time window. Does this mean, the pro traders prefer to use the daily time frame? If you learn to use the price action signal, you can also trade the 30 minute and hourly time frame. Never get upset with your trading results if you lose some trades. Consider it as your business cost. Trading is nothing but the most sophisticated business in the world. If you want to succeed in trading, you must test new strategies. If possible, use trailing stops and start riding the trend to increase the potential profit. Think outside of the box and craft a perfect system based on MDAC indicator by Elder Indicator For MT4.
