RoundPrice Ext Indicator For MT4
Table Of Contents:
- RoundPrice Ext Indicator For MT4
- Trading ideas with the RoundPrice Ext Indicator For MT4
- RoundPrice Ext Indicator For MT4 - Simple Sell
- RoundPrice Ext Indicator For MT4 - Simple Buy
- RoundPrice Ext Indicator For MT4 - Red-Line Crossover
- RoundPrice Ext Indicator For MT4 - Conclusion
The RoundPrice Ext Indicator For MT4 overlays six different colored curves on a price chart. When a candle closes above all the lines, a bull trend is deemed to have emerged, and traders can initiate long positions. Contrarily, when a candle closes below all the lines, the trend is assumed to have turned bearish and a short trade can be entered.
Trading ideas with the RoundPrice Ext Indicator For MT4
Reversal trading is one of the most rewarding aspects of financial trading when done correctly. This is because you are able to catch a move as early as possible and it gives you a more favorable risk-to-reward. Fundamental or news trading is also extremely rewarding however, for the purpose of this article we will just speak about technical reversal trading.
RoundPrice Ext Indicator For MT4 - Simple Sell
In the image below we have a screenshot showing you how to capitalize on a simple or straightforward selling technique.
The idea with this simple trading technique is to ensure that you have the golden MA line above all the rest of the MA lines. This provides a hint to you that the market is currently overbought - and therefore we need to start looking for bearish trades to the downside. One of the easy ways of doing so is simply just to wait for the first bearish bar to close below all the MA lines. This is one of our strongest cues which shows a change in market sentiment from bullish to bearish.
In most cases, when traded properly, the market will respond in favor of your sell reversal setup. One of the headline benefits of implementing this sell-reversal crossover strategy is that it entails little risk.
RoundPrice Ext Indicator For MT4 - Simple Buy
Up next, we have a similar example but in this case, we are referencing a buying-opportunity just to show what the similar steps you need to follow when wanting to initiate buy trades using this straightforward technique as illustrated in the image below.
The aim of this simple trading technique is to ensure that you have the golden MA line below all the rest of the MA lines. This provides a signal to you that the market is currently oversold - and therefore we need to start looking for bullish trades to the upside. One of the easy methods of doing so is just to wait for the first bullish bars to close above all the MA lines.
This is one of our strongest cues which shows a change in market sentiment from bearish to bullish. More often than not, when traded properly, the market will respond in favor of your buy reversal setup. It would be ideal for you to go through adequate and elaborate testing before you officially roll-out this trading strategy into your trading portfolio. The general theme about this trading technique is that it is simple and therefore - your testing will not be so intense.
RoundPrice Ext Indicator For MT4 - Red-Line Crossover
Looking at any of the two above images the indicator has another leading MA line which is colored in red. It is not really a signal line but you can use it as one. Just a heads-up before we actually start diving into the next set of setups - using the red line as a signal line is an advanced form of trading. It is advance in the sense that it is riskier and therefore, you need adequate filtering tools for you to identify and uproot fake signals. The first thing that I will do, is to show you what the drawbacks are when using the red line as your crossover signal without the use of a filtering tool. Below we have a risky sell setup attached.
The idea here remains the same just like with the previous examples. Therefore, just ensure that you have the golden MA line above all the rest of the MA lines. This provides a clue to you that the market is currently overbought - and therefore we should start looking for bearish trades to the downside. The difference here is that we are using the red line as our signal line.
So if the red line crosses the golden line going down as shown in the circled area then we should open a sell. But as you can see - that if you had a stop loss in close proximity to your entry then later on you would have been stopped out before the market officially reversed to the downside. This explains the high-risk factor associated with this trading technique. In the recent example, we got visible evidence showing us the drawbacks of trading without an adequate filter - however, as shown in the image below - we have integrated a filter into the abovementioned strategy. This filter comes in the form of a stochastic oscillator.
Just like the other example - the initial condition for sell reversals is that the market must be in an overbought zone - that is usually when the MAs are widely spaced out and the Golden or red line is above all the rest of the MA lines. The other overbought condition that needs to be met is that the stochastic oscillator must be above or at least touching the 90 level as shown in the circled area of the indicator window.
Then once we have these two elements in place we then look out for the redline to start crossing the golden line going down. Once we have this in order then we need to open a sell position. You can close when you have a decent amount of pips collected or when a buy signal of a similar yet opposite nature appears.
RoundPrice Ext Indicator For MT4 - Conclusion
There is no need to complicate your trading activity. It may be so when you are starting out but as you improve your trading techniques need to simplify with every improvement you make. This can be achieved with maturation in your trading experience which often involves using trading aids that come in the form of indicators.
This is certainly the case with this indicator we have spoken about to a productive end. We used it to formulate simplified trading ideas that involved straightforward protocols and conditions that had to be met. This helped us to gain more confidence in how we go about conducting our reversal trading.
Nevertheless, you are always more than welcome to further test the strategies to an extent where you become masterful and comfortable. Then once you are comfortable you can proceed on by implementing these strategies into your very own trading portfolio. These strategies have a great potential for you but that does not justify your desires to go ahead and start trading with huge lot sizes which put your entire portfolio at risk.