Sidus Indicator For MT4
The Sidus Indicator For MT4 is based on the Sidus Trading System that employs a buy on dips and short on rallies strategy. Buy signals are depicted by upward pointing Green arrows, while sell signals are indicated by downward pointing Red arrows.
Trading ideas with the Sidus Indicator For MT4
This indicator comes with red and green arrows that provide you with entry signals. The green arrow signals a buy whereas the red arrow signals a sell.
It also has a total of four moving averages going across the screen - these moving averages are coloured in aqua yellow and red. You should break up the four moving averages into groups. The red moving averages should be grouped together whereas the yellow and aqua moving averages should be grouped together.
I will describe the reasoning behind following this philosophy. You see the moving averages colored in red should be used as guidelines for you to determine in what direction the market is currently trending in.
So if the price action is above the red line then it means the market is in a bullish trend whereas if it is in a bearish trend - the price action will be below the two red lines. However, that is only the tip of the iceberg in terms of actually opening up buy and sell trades.
As mentioned earlier that the red arrow signals a sell and the green arrow signals a buy trade. However, even these red and green arrows can prove to be unreliable at times. Therefore, it is important for you to use this indicator with the right philosophy behind your trading system.
The two other moving averages aqua and yellow - and they move at a faster speed compared to the two red lines. There is a unique relationship between the two red lines and the two other Lines. That will be clearly illustrated when we go through a few buying and selling examples.
Sidus Indicator For MT4 - Buy Entries
Starting off with the buy scenario - we will look for moments where there is confluence concerning a few crucial conditions as they need to be established before we can even place a long position. The first rule is that the price action must be above the two red lines.
The second condition is that the aqua and the yellow lines first have to cross the red lines to the upside. As this happens or once it that has already happened the green arrow needs to appear on your screen.
Once you have all these three elements is confirmed then you can open your buy trade. If none of these elements are in existence then you should not follow through with the trade. Set your stop loss right below the last previous swing low where the price action was last trading below the two red lines.
These rules illustrate the importance of not rushing off and taking every green signal that comes your way. The image below shows you what a good buy signal looks like when all the three conditions have successfully come into confluence.
Sidus Indicator For MT4 - Sell Entries
Next up we will look at the selling scenario. The first condition that needs to be met is that the price action must be trading below the two red lines. Next up - the aqua and yellow lines have to be below the two red lines before we can even consider opening a sell position.
The final requirement is to wait for a red arrow to appear in your screen during or right after the previous conditions have been met. As soon as you see the red arrow then you can open your short position.
Set your stop loss right above the last previous swing high where the price action was last trading above the two red lines. Using this indicator outside of these requirements will make your trading life difficult. So try sticking to the rules to the best of your abilities.
If there are any improvements you need to make, make them without tempering with the underlying philosophy of the strategy. If you are visual person - just look at their image below to help you fully understand how a good sell signal is represented. You should look for similar trading opportunities though not every trade will result in big wins but you ought to win most of the time - and that is more important.
Sidus Indicator For MT4 - Conclusion
This indicator clearly shows possible trading signals with the use of red and blue arrows. It is therefore important that you do not just jump into any trade simply because a red or green arrow has been given to you as a signal.
This indicator can work to your advantage only if you know how to use it properly. The above-mentioned methods highlighted constructive use cases in which you can go about using this indicator to your benefit. This was achieved by showing you both possible buy and selling opportunities that you could look out for with similar structures.
This trading method is not hard to implement furthermore, the indicator itself is not a complicated indicator to interpret therefore you ought to maximize it potential.