Turn Area Indicator For MT4
Table Of Contents:
- Turn Area Indicator For MT4
- Trading ideas with the Turn Area Indicator For MT4
- Turn Area Indicator For MT4 - Using Price Action Too
The Turn Area Indicator For MT4 is based on the Moving Average and Relative Strength Index (RSI), and displays potential price reversal areas.
Partially Automated Trading Besides Your Day Job
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Trading ideas with the Turn Area Indicator For MT4
When it comes to trading, one of the most important aspects of trading is knowing in what direction the market is currently trading in and the next important piece of information that is also equally as important is knowing when the market is about to change direction.
When you have two elements in your skill-set relative to your analysis and trading, then your trading life becomes simpler. However, to do this on your own, using only the price action, does require a high level of mastery as far as your technical and fundamental analysis abilities are concerned.
Hence, why the Turn Area indicator was created. It is an indicator that combines the computation of the moving average and relative strength index and simplifies it into a histogram that paints below and above a mid-point line. Therefore, it makes it easier for you to see what the trend direction is and when a reversal about occurs. The above-mentioned statement is illustrated below in the screenshot.
Looking at the screenshot above, you can see how I pointed out the difference in uptrend and downtrend market activity. So when the vertical bars are above the zero line on the indicator the market is said to be in an uptrend and when it is below this line the market is said to be in a downtrend.
Naturally, you will be inclined to trading the reversals, which will occur to the moment you see the vertical bars flip in the opposite direction. If you desire to open a sell trade, you should wait for the indicator to flip its vertical bars to the downside after an uptrend because that hints that the market is about to make a bearish reversal.
Similarly, if you wish to open a bullish reversal trade, then we need to wait for the first few bars to flip to the upside after a downtrend has occurred.
Turn Area Indicator For MT4 - Using Price Action Too
In all fairness to the brilliance of the indicator, the above-mentioned trading strategy can be used satisfactorily provided you are able to execute the trades accurately and time the market correctly. But even so, you will realize that sometimes it would not be enough for you to just enter buy and sell trades solely on the basis of the flip flop movement of the Turn Area indicator.
And therefore to improve your trading results and to ensure that you prioritize only quality trade setups, you would have to refer to the price action activity to give you solid reversal hints. What I mean by this is that you will rely on the price action on the market to print various reversal trade patterns, and then use the Turn Area indicator as a confirmation to the time of your entry based on the flip-flop movement of the indicator.
For illustrative purposes, we will go through a few examples below just to show you the visual representation of these trade setups. I am optimistic because if you can see what the signals look like, you will be able to synthesize the systematic approach of this strategy, and then you will have the confidence to implement the strategy independently.
Below, I have inserted a screenshot that makes reference to both buying and selling trading opportunities so that you are able to grasp both concepts.
With reference to the image above, you can see that the first signal was a sell signal. Firstly, what I did was - I waited for a bearish reversal candlestick pattern to form. Which in this scenario, was a bearish engulfing pattern.
This is one of the best reversal patterns in the market. What is great about it is that it occurs quite frequently, therefore, try by all means to make profitable use of this pattern. After identifying the bearish reversal pattern, the vertical bar has to flip to the downside of the zero lines.
I will then enter the market going down. that is all there is to it. You just need two elements - whereby I use the Turn Area indicator as a confirmation tool. The next trading opportunity was a bit of a tricky buy trade but was also similar to the first trading opportunity identified. In this case, it was a bullish engulfing pattern that was printed by the price action activity.
Secondly, I also waited for confirmation from the Turn Area indicator which came in the form of a vertical bar flipping to the upside. With that confirmation, I knew that it would be a good time to enter the market and execute buy trade. As I mentioned, there is nothing complicated at all about this trading strategy.
All you need to do is adhere to the said requirements before you initiate any given trade. Step 1 - identify the reversal candlestick pattern. Step 2 - refer to the indicator to give you a reversal flip flop signal that agrees with the reversal candlestick pattern that was identified in step 1.
