Sensetive Indicator For MT4
Table Of Contents:
- Sensetive Indicator For MT4
- Trading ideas with the Sensetive Indicator For MT4
- Sensetive Indicator For MT4 - Buy Entries
- Sensetive Indicator For MT4 - Exit and Entry Points
- Sensetive Indicator For MT4 - Conclusion
The Sensetive Indicator For MT4 is a trend direction and strength indicator. It gets plot as a curve that fluctuates above and below a zero line. The indicator creator recommends initiating longs when the curve crosses zero from below, and enter short when it is crosses the zero mark from above.
Trading ideas with the Sensetive Indicator For MT4
This indicator is a reliable resource for remaining sensitive to the price movements to give you a visual representation of whether the market is in an up or downstate.
The most important aspect of this indicator is the middle line because the middle line is the reference point of this indicator but the only problem is that when you upload the indicator into your screen - the reference line does not show up.
Therefore, before we dive into any proper trading ideas or directives - we shall first insert the zero line so that it can become more visible to the naked eye. The image below shows that I have achieved just that - you can clearly see the middle line going through the indicator window of this trading tool.
Adding in the middle-level line makes a difference for us when it comes to quickly interpreting the state of the indicator.
Now we will look at a few trading ideas to see how this indicator can benefit us in our trading exploits.
Sensetive Indicator For MT4 - Buy Entries
When one is looking at buying, using this indicator, we have to wait for the indicator to break through the zero line to the upside. Once that has been achieved, then we can look at the price action to give us a triggering point for our intended buy position.
In the image below you can easily take note that the market has just made a breakout from the recent downtrend however based on our indicator, we cannot go ahead with our buy trade just yet even though the market has broken to the upside.
In the image above you can clearly see why it is not a good idea to buy just yet because if you enter the market with a premature buy trade then you will end up exposing yourself to a lot of risks.
Therefore, it is wise to wait for the oscillator to break the zero line to the upside furthermore you could also wait for the price action to bounce off the small support trend line as this will give you added confirmation that it is a good time to buy.
The image above illustrates the importance of waiting for a good signal and therefore we will not trade outside of this trade setup until the above-mentioned conditions are met.
Additionally, if you look at the top left of the screenshot you can see that I am doing my analysis on a high time frame - the 4-hour chart. The reason being, is that I do not want to trade in a risky environment where the market is not working in my favor. I know that many of you could argue against this philosophy, saying that by trading this way I will be entering the market quite late.
To a certain extent that does make sense but I would not look at it like that. Because it is not sound practice to trade when the market does not have odds firmly stacked in your favor. We shall look at more examples of what has happened after the indicator has crossed the zero line.
But before we get to that - you should also value the benefit of using the higher time frame because the Sensetive Indicator helps us to confirm the market sentiment and with that market sentiment we can trade in that direction on the lower time frames until the oscillating indicator crosses the zero line in the opposite direction.
Sensetive Indicator For MT4 - Exit and Entry Points
Before I continue with this trading logic, I would just like to point out that the following method must be used in conjunction with a trailing stop.
You can activate your trailing stop so that it can run automatically or you could manually trail your stop loss. Just like with any other trend - there will always be peaks - therefore, during these peak moments, you should make sure that your stop loss is in profit.
In the image below you can see that I have marked off the points for entering and the points for exiting the market. But you should also see that I have also marked off the larger-than-normal spikes in the indicator.
The reason I did that is so that you can become aware of the strong possibility that the market tends to lose momentum and strength soon thereafter therefore it is a good time to take profits or to make sure that your stop-loss is deep in profit.
Sensetive Indicator For MT4 - Conclusion
The sensetive indicator is one of the most useful indicators we can use for analyzing and trading successfully. The above-mentioned use cases stipulate the potential benefits you could yield if you were to test, simulate, improve, and constructively follow through with the trading ideas mentioned above.