Moving Average Mirror Indicator For MT4
Table Of Contents:
- Moving Average Mirror Indicator For MT4
- Mirroring property
- Trading the 50% retracement level
- Adjusting the shifting value
- Using the trend line
- Protecting the capital
Moving average, a popular tool used by thousands of traders. Being a naïve trader, you can’t imagine, how easily you can secure profit with the help of an MA or moving average. There are four types of moving average available in your trading platform. Many amateurs install too many moving averages and use multiple moving average strategies. Instead of using such a complicated technique, you can use the Moving Average Mirror Indicator For MT4 and make your trading life easier. You don’t have to deal with different periods of different kinds of the moving average. This simple indicator will let you the best place to buy or sell any asset.
Partially Automated Trading Besides Your Day Job
Alerts In Real-Time When Divergences Occur
Moving Average Mirror Indicator For MT4 works on the basic principle of simple moving average and shifting property. The shifting property generates more accurate signals and this helps the short term and long term traders. Those who are excited should read this content carefully since no strategy is perfect. No matter how deep you dig, you are not going to have the perfect system. Remember the concept of uncertainty in the trading business.
Mirroring property
The Moving Average Mirror Indicator For MT4 has a mirroring property. Those who have used a traditional MA-based strategy will consider messed things up while using this tool. They will look for buying opportunities after the blue curve crosses above the red curve. The title of the indicator says, “Mirror Indicator”, and this means you will have to take the opposite reading. When the blue line cross above the red line, you should look for a short trade. Similarly, a bullish crossover is represented by the red curve crossing above the blue curve. Remember the mirroring property or else you will execute the wrong trade.
Trading the 50% retracement level
The experienced mentors always teach their students by giving examples with clear explanations. By now we know the property of the Moving Average Mirror Indicator For MT4. This tool is mostly used to find the perfect buying and selling point in the asset. But to make a profit, you must use other parameters in the Forex market. Let’s see how the pro traders use the 50% retracement zone to trade the bullish crossover, in the Moving Average Mirror Indicator For MT4.
Figure: Use of Moving Average Mirror Indicator For MT4
The position traders know 50%, 61.8 Fibonacci zone is the best spot to ride the trend. These two levels are most prominent since the market ends its retracement and continue to favor the trend. But using these levels may not be enough when the global economy is facing an extensive crisis or recession period. You might be a victim of the trend change and eventually, lose money from the best signals. But look at the class trade setup based on the Moving Average Mirror Indicator For MT4 and 50% retracement zone. The investors waited for the price to fall back towards the 50% level and during that time, we have a bullish crossover, This indicates, the buyers are now ready to drive the price higher. The yellow shaded region indicates extended bullish rally after the bounce off from a 50% level.
Adjusting the shifting value
Signals generated in any price chart based on the moving average is nothing but an indication of lagging data. Due to the lagging nature of the moving average, the pro traders often changes the shifting value of Moving Average Mirror Indicator For MT4. Though the default settings are set to 0, you can improve your accuracy by adding +1 or +2. But the value should be adjusted based on the condition of the financial market and the nature of the trading asset. Before you bring any major change in the parameters of the Moving Average Mirror Indicator For MT4, you should think about the efficiency. Without testing the new settings of the Moving Average Mirror Indicator For MT4, you are going to jeopardize the indicator.
Using the trend line
The amateurs in the investment industry may think the Fibonacci strategy is the only way to use the Moving Average Mirror Indicator For MT4. The above technical analysis is just an example to make you understand how the professional mentor or successful trader uses this tool. You can also use the Moving Average Mirror Indicator For MT4 to trade the horizontal support or resistance. But trading the supply and demand requires a higher time frame or long term overview of this market. If you intend to scalp based on these key levels, you should not rely on the Moving Average Mirror Indicator For MT4. Scalping is only suited when you use normal 100 or 200 days SMA. Custom made indicators that work on the foundation of MA should not be used in an aggressive system. Rely on the conservative approach and create a long term vision. Stop thinking about the short cut method in trading.
Protecting the capital
The Moving Average Mirror Indicator For MT4 is an amazing asset for the position trader. By implanting the crossover methodology, buying or selling any asset becomes easy. Does this mean, you have got the ultimate Holy Grail? There is no such thing called Holy Grail in the investment business. If you learn trading step by step, you will know why the pro investors use the prominent rule of money management. After waiting for months, you may find the best signals, still, there is no guarantee you will make a profit.
Before you install Moving Average Mirror Indicator For MT4, you have to think about the random outcomes of the trade. Be ready to accept losing trades even after doing an in-depth market analysis. Never try to avoid losing orders rather learn from the mistakes you made in trading. By becoming an active learner, you can change your lifestyle and develop the habit of successful traders.
