16 indicators in 1 Indicator For MT4
Table Of Contents:
- 16 indicators in 1 Indicator For MT4
- Trading ideas with the 16 indicators in 1 Indicator For MT4
- 16 indicators in 1 Indicator For MT4 - Keep It Simple
- 16 indicators in 1 Indicator For MT4 - Regular Divergence
- 16 indicators in 1 Indicator For MT4 - Negative Correlation
The 16 indicators in 1 Indicator For MT4 allows traders to simultaneously overlay the following indicators on a price chart: 1. Four Different Moving Averages 2. Bollinger Bands 3. Parabolic SAR In addition, 16 other popular technical indicators can be plotted on separate panes below the price chart: 1. Commodity Channel Index? (CCI) 2. Relative Strength Index (RSI) 3. Standard Deviation 4. Moving Average Convergence Divergence (MACD) 5. Stochastic Oscillator 6. Bull Power Indicator 7. Bear Power Indicator 8. On Balance Volume 9. Awesome Oscillator (AO) 10. Accelerator Oscillator (AC) 11. Money Flow Index (MFI) 12. Average True Range (ATR) 13. Oscillator of Moving Average (OsMA) 14. Average Directional Movement Index (ADX) 15. Momentum 16. Force Index
Trading ideas with the 16 indicators in 1 Indicator For MT4
As mentioned or hinted by the name of the indicator - this indicator has the ability to showcase 16 different indicators to give you a comprehensive view of what is transpiring in the market from a technical standpoint.
However in most cases, you will not need to use all 16 different indicators because you could overwhelm your trading experience thus causing you to go into analysis paralysis.
16 indicators in 1 Indicator For MT4 - Keep It Simple
Therefore you should make use of a select few indicators that you know very well and that also gives you consistent results for most of the strategies you use in conjunction with any particular indicator. In the image below, I have inserted a screenshot which shows a more simplified representation of the indicator.
Looking at the image below you can see that I selected the EURUSD pair as my currency pair of choice for mapping out the plots of the indicator but this was also the corresponding currency pair of the active chart. Furthermore, I am using a CCI indicator which has a period of 14.
This period has proven to be reliable because it provides consistent results for my trading. Nevertheless, if you wish to analyze the data of another currency pair you may choose to do so at will but just make sure that the chosen currency pair or financial instrument corresponds to the name of the financial instruments in your broker.
Because from broker to broker sometimes you find that certain instruments will be named differently therefore you need to select instruments that follow the naming convention of your broker.
16 indicators in 1 Indicator For MT4 - Regular Divergence
Now that we have that cleared out the way we can now proceed on to look out for trade setups which makes use of the current settings we have for this indicator.
As noted in the image above this is a bearish regular divergence trade setup which occurred on the small time frame - the 15-Minute chart. Regular divergence patterns are effective price structures that lead, most of the time, to reversals and that is why I like to use this trade setup.
Regular bearish divergence patterns occur when the price action is making higher highs whilst the oscillator is making lower lows. Of course, you can use other oscillators on your chart such as the RSI. The MACD is also another great tool to use for trading divergence trade setups. Nevertheless, the CCI worked well for me in this trading example.
What I like most about the trade setup is that it came right after a London breakout had occurred which meant that the market rallied quite steeply to the upside and therefore it reached what possibly could have been the high of the day. Now with the regular bearish divergence structure coming into full-flow, it means that let the high of the day could have been already set as seen by the exhaustion in the regular divergence trade setup.
This pattern occurred in the 15-Minute chart meaning that we only take a short position for a short time. Therefore there is no need to commit to this so trade for a long period of time. In the next trading example we took the capabilities of this indicator up to the next level.
16 indicators in 1 Indicator For MT4 - Negative Correlation
In the image below I have inserted a picture which showed negative correlation between the EURUSD and the USD index.
The reason why you see this negative correlation between EURUSD and the USD index is because the USD index has a strong positive correlation to the USD currency however the USD currency is actually the quote currency in the EURUSD pair and that is why you see the opposite movements occurring between the EURUSD and the USD index.
For my settings what I did was I just selected the USD index and then I chose to look at the data of the money flow index. I did this because the money flow index actually attempts to monitor the inflows and outflows of buying and selling volume relative to a particular index or pair. The USD index tends to sell off when the EURUSD is gaining strength.
With correlation, you need to value the fact that it is not a perfect science because you will find that even though there is a high negative or positive correlation there are some lagging elements that go along with it because the market is so diverse with so many financial instruments which have different levels of supply and demand.
The examples which I reference above just touches the tip of the iceberg in terms of what this indicator can do for you. It has a lot of potential and capabilities however you should test your methods thoroughly in your simulation environments before you go live.