three indicators to use with the Raghee Horner method Indicator For MT4
Table Of Contents:
- three indicators to use with the Raghee Horner method Indicator For MT4
- Trading ideas with the three indicators to use with the Raghee Horner method Indicator For MT4
- Three indicators to use with the Raghee Horner method Indicator For MT4 - Good Entries
- Three indicators to use with the Raghee Horner method Indicator For MT4 - Conclusion
The three indicators to use with the Raghee Horner method Indicator For MT4 plots the three Exponential Moving Averages (EMA) and a 200 period Simple Moving Average (SMA) used in the Raghee Horner Forex trading method.
Trading ideas with the three indicators to use with the Raghee Horner method Indicator For MT4
This indicator-based trading system is based on a method of trading that was developed by Raghee Horner. It consists of three sets of exponential moving averages, which are superimposed by the 200 simple moving average.
The simple moving average line is your anchoring line to help you distinguish the different market situations with respect to the sentiment. The incorporation of the exponential moving average is a wise choice because exponential moving averages provide reliable oscillations.
EMAs are able to effectively filter out most of the noise in the market. Furthermore, it incorporates some of the most recent price activity into its oscillation, therefore, when it is plotting across your trading screen, it does so without the sole dependence on historic price activity.
When you activate this indicator, there will be three separate indicators that you need to load into your chat hence the name three indicators. However, this can be a laborious task especially when you have to switch from one financial trading asset to the other - which could cause you to lose quite a bit of time especially when trading on the smaller time frame.
But thankfully there is a solution to this problem that sets you free from always requiring it to load and activate every single indicator just to analyze the market. So what do you are going to do is just upload the indicators and activate them once. Once we have all the indicators activated on the screen, I will then save that whole trading system as a template.
You can name this template however which way - just make sure you remember what it is called. You can then switch to other financial trading assets and just load the template each and every time we go to another asset. This just makes the whole process of using this trading system and its corresponding indicators seamless.
Now that we have that cleared out of the way, we can start off right away to look for trading examples that leverage the brilliance of this trading system.
Three indicators to use with the Raghee Horner method Indicator For MT4 - Good Entries
As I mentioned earlier that the 200-SMA is your anchoring line and therefore we will monitor the other exponential averages which comes in the form of a channel to look up for intersecting points.
You see, when the exponential moving averages goes above the golden line or 200 SMA, the market is considered bullish and when it is trading below the 200-SMA the market should be considered as bearish.
So with this concept embedded in your mind, you will know how to enter the market if indeed you do wish to use the sentiment as your trading directive, however, in our instance, we normally use it for the purpose of trading crossovers. These crossover signals occur whenever the exponential moving averages crosses the 200-SMA.
As you can see that the group of exponential moving averages is channeled inside a black channel so to say which are made up of blue, aqua, and red lines. The image below shows you how to actually go about executing this crossover trade and I have also made an attempt to give you an actionable plan to set stop-losses.
Before I go on with the specified trend trading strategy, I just want you to know that you should actually zoom out of your chart whenever you have this trading system activated on your screen. The reason I say this is because when you zoom out you are able to see the green and red zones which actually correspond to the market sentiment relative to the price action activity.
So when you zoom out, you see that some of the candlesticks are highlighted in green which shows you that the market is bullish and then also some of the candlesticks are also highlighted in red which indicates that the market is bearish. Therefore, if you are trading based on market sentiment you must use the colors to confirm trading signals.
In the image above we have two trading opportunities. The first one being a buying opportunity and the second one being a selling opportunity. It is a two-part trading system, therefore, it is fairly basic to implement. The buying opportunity is shown on the left-hand side of the screenshot.
All you had to do was wait for the blue line to cross the golden line, which is the 200-SMA, going to the upside. Once that has been achieved then the color of the candlesticks needs to be highlighted in green which serves as confirmation for a buy. As soon as that happens you can open your buy trade.
In the next example, we have a sell trading opportunity. The difference is that we have to wait for the red line to cross the golden line to the downside and then after that we refer to the colors of the candlesticks. If they have a red highlight, then we can go along with our sell trade set up.
Three indicators to use with the Raghee Horner method Indicator For MT4 - Conclusion
This triple-based indicator enables us to clearly detect the market sentiment. Furthermore, it also aids in identifying good reversal trade setups. In conclusion, it is always good to take these rules and refine them through intensive testing and actual live trading.