Subway Indicator For MT4

Subway Indicator For MT4

Table Of Contents:

  1. Subway Indicator For MT4
  2. Trading ideas with the Subway Indicator For MT4
  3. Subway Indicator For MT4 - Buy Entries
  4. Subway Indicator For MT4 - Sell Entries
  5. Subway Indicator For MT4 - More Trading Ideas
  6. Subway Indicator For MT4 - Conclusion

The Subway Indicator For MT4 is a Moving Average based channel indicator. It is ideal for short term trading, and works best on assets that exhibit normal volatility. This indicator also combines well with other tools of technical analysis like Fibonacci levels and technical oscillators. The Subway Indicator For MT4 provides a simple, systematic way to trade the financial markets. The standard trading rules are listed below: 1. In case of a broader bullish trend, enter long on a rebound from the center line. Contrarily, initiate shorts on a downward reversal from the center line during a overall bearish trend. 2. Exit long positions when price hits the top of the Subway indicator. Conversely, cover your shorts as soon as price reaches the bottom of the channel indicator.

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Trading ideas with the Subway Indicator For MT4


The main use case of this indicator has been specified in the introductory phase of this piece. In the middle of the indicator, we have two lines meandering in between all three dynamic Fibonacci resistance and support lines on either side. These two middle lines mark the entry points for our trading positions so that we can benefit from bounces off the support or resistance lines depending on which direction the market is best suited for us to trade in.

We will look at a few sell and buy examples to illustrate the visual representation of these trading opportunities so that you establish a better understanding of how to exploit these moments when they arise in the financial trading markets. Below we have a basic visual of what the indicator looks like on your trading screens.



The default settings allow you to clearly see all critical aspects of the indicator - you can feel free to also zoom out a bit for a greater perspective. However, it is also best not to zoom out too much so that you can still have a visual of the ever-changing price action patterns chartered by each new candlestick that forms. This should be of great importance to us because ultimately we need promising price action patterns to motivate us to actually open our buy or sell positions whenever the market bounces off the middle subway lines in the multi-layered tunnel.


Subway Indicator For MT4 - Buy Entries


First up we have a buy trading opportunity presented below. There are a few critical elements we need to be on the alert for before we can even process our buy order. The idea is for the market to initiate a visible and elaborate rally coming from the bottom three red lines and then break the middle subway lines to the upside.



The breaking of the middle subway lines confirms to us that the momentum of the recent bullish move is relevant. Therefore we can enter into a buy position, but there is still one more element we need to be on the lookout for and that is support. Meaning that the two subway lines need to reject any small sell-offs when the market begins to retrace. If the two middle subway lines offer and show proper support for buying then we can buy.

The price action patterns you will be on the lookout for in this instance will obviously be based on bullish reversal patterns or rejection candlesticks which show that the market is not willing to sell-off beyond the vicinity of the two subway lines. Let us talk a bit about our trade or money management concerning this trading strategy. It goes without saying that you should not use a huge lot size that could blow your account.

Next, your take profit target will go at the highest red line directly above your position. For a one-to-one risk-to-reward ratio you could place a stop loss right at the lowest red line directly below your entry or you could place it below the last swing low of which both stop loss philosophies could see your stop loss placed in a similar position. It is up to you.


Subway Indicator For MT4 - Sell Entries


Just like the buying example with this selling example we also have a number of critical elements we need to be on the alert for before we can even process our sell order as described and shown below. The goal is for the market to initiate a visible and elaborate sell-off coming from the top three red lines and then break the middle subway lines to the downside.



The breaking of the middle subway lines confirms to us that the momentum of the recent bearish move is valid. Therefore we can enter into a sell position but there is still one more condition we need to be on the lookout for and that is resistance. Meaning that the two subway lines need to reject any small rallies or bullish cutbacks when the market begins to retrace. If the two middle subway lines offer and show proper resistance against buying then we can sell.

Just like in our buying example - the price action patterns you will be on the lookout for in this instance will obviously be based on bearish reversal patterns or rejection candlesticks which show that the market is not willing to rally above the vicinity of the two subway lines. Let us touch on our trade or money management concerning this sell trading sequence. It goes without mentioning that you should not use a big lot size that could blow your account.

Next, your take profit target will go at the lowest red line directly below your sell position. For a one-to-one risk-to-reward ratio you could place a stop loss right at the highest red line directly above your entry or could place it above the last swing high of which both stop loss philosophies could see your stop loss placed in a similar area. Just use your own discretion in each trading instance.


Subway Indicator For MT4 - More Trading Ideas


Of course there are ways of tweaking this basic trading idea. We can look at maybe adding in other indicators like a Bollinger bands indicator or even a simple and yet effective Relative Strength Index indicator as shown in the image below.



It is a buy example. We buy when the price action touches the second-lowest red line and when the RSI oscillator is below the 30 level - which provides confirmation to us that we are in an oversold zone.

Subway Indicator For MT4 - Conclusion


The Subway indicator has proven to be an effective indicator. It has great potential for you to yield good profits on a consistent basis provided that you have a solid foundation on how to use it to your advantage. Thankfully, we did go through some good strategies and examples for you to make productive and profitable use of with the correct money management philosophy and system.

 

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