Strength Arrow Indicator For MT4
Table Of Contents:
- Strength Arrow Indicator For MT4
- The bullish and bearish arrow
- Executing long trades
- Executing short trades
- Taking advantage of major spikes
- Protecting your trading capital
- Learn to improvise
Strength Arrow Indicator For MT4 does the job of an RSI indicator. But comparing it the RSI indicator will be a big mistake since the indicators deal with lots of complex calculations and represent the overbought and oversold condition of the currency pairs with an arrow. So, it’s very obvious you won’t have to deal with numbers or specific levels while using the Strength Arrow Indicator For MT4.
Partially Automated Trading Besides Your Day Job
Alerts In Real-Time When Divergences Occur
The Strength Arrow Indicator For MT4 tends to work best in the major currency pairs. But some of the experienced professionals often use it the cross pair. Being a new trader, if you use this indicator in cross pair trading, use it in the bigger time frame. Does this mean the Strength Arrow Indicator For MT4 works in the daily and weekly time chart? You can also use this indicator in a smaller time frame and execute perfect trades. But to do so, you must use the price action trading system.
The bullish and bearish arrow
Stop executing a short trade just by seeing a downward arrow in your trading chart. If you trade with the major trend, you can execute the trade in the first arrow but if you trade the reversal you need minimum two arrows pointing in the same direction. Those who are new might have trouble understanding the reading of Strength Arrow Indicator For MT4. If the arrow points upward, you can expect a bullish run. Similarly, if the arrow points downward, look for the short trade setup. But when you trade the reversal, the second arrow must be a little bit above the first arrow ( for the case of long trade setup).On the contrary, the second arrow must be a little bit below the first arrow when you trade the bearish reversal.
Executing long trades
If you learn to execute long trades by using the Strength Arrow Indicator For MT4, you can follow the same rule to execute short trade. Though you can use the arrow mark to trade the reversal and continuation pattern, we have selected a reversal trading scenario. Make sure you carefully read this article or else you will not be able to use the Strength Arrow Indicator For MT4 like a pro trader. Let's see a simple long trade setup based on the arrow mark.
Figure: Long trade triggered after an extended bullish rally
Those who are experienced with chart pattern trading technique must have spotted the double bottom formation in the EURUSD pair. Notice the first arrow is a little bit down the second arrow the of Strength Arrow Indicator For MT4.In other words, the second arrow is relatively higher than the first arrow near the blue shaded support level. If both of this arrow were at the same level, you should never execute any long trade since the previous trend is bearish. But in this case, can execute the long orders since the higher placement of the second arrow in the demand zone indicators strong possibility of a bullish reversal.
Executing short trades
We will discuss the short trade setups based on the illustration of the previous diagram. We have circled a downward arrow even though they are formed at the same level. We can execute short orders at those level even though there is no difference between the two arrow level since the long term trend is bearish. But if the long term trend was bullish, we have to ignore the trade setups. So, make sure you consider the previous trend while using the Strength Arrow Indicator For MT4.
Taking advantage of major spikes
At times the market might exhibit false spike. Right after the spikes, the Strength Arrow Indicator For MT4 might print a new arrow in the chart. Does this mean you can execute the trade based on the new readings? The massive false spike in any currency pair usually represents an unstable market condition. You might spot high-quality trade signals right after the major spike, still, you need to avoid the trade. At times it's better to stay in the sideline rather than losing money executing random trades. Being a currency trader, you don’t need to focus on overtrading or high-frequency trading method. Learn the use of Strength Arrow Indicator For MT4 and trade the obvious signal.
Protecting your trading capital
By using the Strength Arrow Indicator For MT4, you can easily filter the overbought and oversold condition of any currency pair. But finding the condition of any market is not enough to filter the best trades. You should learn about the support and resistance level trading system. If necessary, use the price action signal to trade the key levels of the market. The indicator should be used only as your filter tools. If you execute trade right after the formation of a new arrow, you are going to lose a huge amount of money.
Try to learn the use of Strength Arrow Indicator For MT4 by using a demo account. Once you feel comfortable with the indicator, start trading the real market with managed risk. Stop thinking about making a big profit by using a high leverage trading account. Those who are new to this market should use 1:10 leverage at the initial stage.
Learn to improvise
At times you have to improvise your trading strategy to ensure maximum efficiency in trading. This is something which you will never learn by reading books and article. Improvisation skill is developed over a period. Try to maintain a trading journal and find the key weakness related to the use of Strength Arrow Indicator For MT4. Find the mistakes in your trading system and fine-tune your trading strategy. Try to find good trade setups in favor of the trend since it reduces the risk significantly. However, if you manage to learn chart pattern trading technique, you can also trade the key reversal.
