MMR Indicator For MT4
Table Of Contents:
- MMR Indicator For MT4
- Trading ideas with the MMR Indicator For MT4
- MMR Indicator For MT4 - Buy And Sel Entries
The MMR Indicator For MT4 combines Moving Average crossover with Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) to generate buy and sell signals. Traders can initiate longs when a Green bar appears, and exit when the indicator line crosses below zero. Conversely, shorts can be entered when a Red bar appears, and the trade squared off when the indicator crosses above the zero mark.
Partially Automated Trading Besides Your Day Job
Alerts In Real-Time When Divergences Occur
Trading ideas with the MMR Indicator For MT4
This indicator is made up of three individual indicators working together to generate directional-change signals. The three indicators that are actually being used within this advance and modified indicator are as follows - you have moving averages which are there to provide crossover signals.
Then you have the MACD indicator which has its own bi-directional histogram to show you what direction the market is trading in and then you also have an RSI which works in line with the moving average and that is how you get the crossover signals. So as hinted or pointed out in the introduction, your primary signalling point will be when a green bar gets printed for the first time and that will be your bullish signal.
You then close the trade as soon as the line crosses the midpoint line going to the downside. Similarly a short trade setup comes about when a red bar is printed and then you ride that bearish trade until the line crosses the midpoint line going downward.
MMR Indicator For MT4 - Buy And Sel Entries
The reason why we use this exit strategy in this way so that we do not lose most of the money when pips are being collected. Reason being is that if you were to solely trade the colour changes of the bars, then you can end up losing all the pips you have made before a big reversal actually occurs.
Because if you are in a bullish trade with the reliance of a green bar as your entry triggering point and then you wait for a red bar to print so that you can exit the trade - you could end up doing so when the market has already moved right down way below the entry point of your buy trade.
That is the last thing you want because as a trader you should collect the pips as you are making headway in the direction which favours your position. It is quite disappointing to see the market change on you right after you have gained so many pips and then you did not choose to take any money off the table. So with the exit strategy that was pointed out, using the line crossing over the midpoint line of the histogram, we are able to use that as a point of reference to know when the market has begun a dissipation phase in strength and momentum.
Because ultimately you want to exit the market in a mature state - close to the peak of uptrend or downtrend. Below you will find two examples on how to use this indicator as per the strategy outlined before. We will start off with a bullish trade set up so you can identify bullish signals on your own if and when you choose to implement this strategy in your own trading account.
Then after that we will look at a bearish trade setup as it will instruct you how to enter and exit the market. In the example below is a bullish trade set up - so we wait for the first green bar to show up and we open up a buy trade. As the market goes on and trade - we will then patiently wait for the blue line to intersect the midpoint line which will be our exit point.
Next we have a bearish trade setup reealed below with the first red bar being printed. The exiting point will be when the blue line crosses the midpoint line going in an upward direction.
However, sometimes you actually do not have to wait for the blue line to cross in an opposite direction at the midpoint level. Another approach is to incorporate a trendline in your uptrend or downtrend, and then look for breakouts that occur. The moment the trend line gets successfully broken - you should exit the market that is just a safety precaution.
Because sometimes what happens is that if you prolong your exit the market will retrace back quite deep into your active trade postion. You will lose most of the the gains, if not all, you made in the early parts of your trade. So the image below actually shows you exactly what I mean by this.
Therefore this is another approach you can actually follow through so that you exit the market at those points when there is a manifestation of real market exhaustion.
