Seasonal Indicator For MT4
Table Of Contents:
- Seasonal Indicator For MT4
- Trading ideas with the Seasonal Indicator For MT4
- Seasonal Indicator For MT4 - Correct Configuration
- Seasonal Indicator For MT4 - Seasonal Projections For Trading Ideas
- Seasonal Indicator For MT4 - Conclusion
The Seasonal Indicator For MT4 is designed specifically to locate seasonal trends in the commodity market. It also seems to work with some currency pairs like EURUSD and USDJPY.
Trading ideas with the Seasonal Indicator For MT4
The whole trending game is reliant on systems and strategies to help traders gain comprehensive evidence of what the likely outcome will be in the coming weeks or days.
Therefore, it is important to have tools that endow you with an edge in your skillsets which speaks to making accurate market predictions. Trend or directional forecasting is one of the key components of technical analysis and even fundamental analysis because it provides you with a strong foundation in your trading to formulate trading ideas which line up with your market predictions. However, in order for you to achieve this you need proper tools.
Seasonal Indicator For MT4 - Correct Configuration
The seasonal indicator attempts to provide us with forecasts which projects seasonal outlooks of what the market could do. Looking at the image below you can see that this seasonal indicator does not work on the 15-Minute chart.
This is because it was made to work solely on the daily time frame so therefore let us just change to the daily time frame so that we can view the movement and visual of the indicator. In the next image below you can see that I did indeed change the time frame to the daily chart and therefore we are able to see that the indicator is actually operating properly.
So remember that this indicator is basically evaluating data from the past five years in order to formulate forecasts of the next set of movements in the near future of the market which is why you see that gold and small line towards the end of the indicator in your chart.
Seasonal Indicator For MT4 - Seasonal Projections For Trading Ideas
So now that we have the indicator fully operational it is best now to proceed by actually looking at exploiting a few trading ideas on the basis of formulating futuristic projections with the aid of this indicator. The image below you can see that I am using the projections drawn by the indicator to formulate prospective trend directional moves for the next or upcoming days or even weeks.
So as you can see in the image above the indicator attempts to forecast the futuristic price activity or movement using a gold line. The general shape of this forecast is mapped using drawing tools such as a magenta trend line and vertical lines. This is done so that I can trace the structure into the active price chart which is projected into the future.
Just note that this may not be accurate but it gives us a fairly good idea of where the market could go. Now we head down to a lower time frame to see which way we should be trading in for the coming week or next several days. In the next image below you can see that I have gone down to the 4-hour chart so that you can see the projection into the near future.
This, in turn, can give us a good idea of what direction to trade in for the upcoming days or week ahead. At the bottom of the chart, you can see that the indicator has disappeared and that is obviously because this indicator does not work on the lower time frames it only works on the daily time frame.
That does not matter because we have already done the mapping of the indicator and its corresponding forecast for the upcoming weeks and therefore I have drawn it in using the purple or magenta trendline. So based on our analytical work in the attempted forecast for the next week of several days we should be looking for bearish trading opportunities.
It should be pointed out that this indicator does not actually give you triggering points for you to open up your trade positions. But however, it does provide us with a fairly good projection of the likely price action movement that is about to take place for the next several days and coming weeks. So having that as a basis for your analysis you are then able to determine the general trend direction that you need to be trading in.
So as per the image above you can see that the market for the next few days or week will be trading in a bearish direction. It would be wise for us to trade along with this forecasted movement therefore look for reversal signals which complement the direction as shown by the indicator especially after counter cycles expire.
Seasonal Indicator For MT4 - Conclusion
This seasonal indicator works only on the daily time frame. It will never plot its oscillations or structure on any other time frame so make sure your chart is configured to the daily time frame. This indicator works best to our advantage when we want to gain a futuristic viewpoint of the market because this indicator tries to provide us with forecasts in terms of which way the market is likely to trend in.
It is good to use a top-down approach whereby you determine the forecasts on the functional daily time frame as defined by the indicator and then you switch down to a lower time frame like the hourly chart to see which way the market will be trading in for the upcoming week or so. Therefore, with every trading opportunity that you are presented with you will always be mindful that the identified opportunities must complement the directional bias which is defined by the indicator.