Value Charts Indicator For MT5
Everyone is biased with a lower period strategy. The naïve traders consider aggressive strategy as a quick profit-making opportunity. If you get any chance to meet the institutional or highly successful Forex trader, analyze their portfolio or ask them about their average holding period for each trade. Most of them will say, they keep their trades open more than a day. Since the position trading method gives the retail traders a hassle-free profit-taking opportunity, many investors consider it as the best method to place the trade. But position trading requires perfect utilizations of your tools. Tools like Value Charts Indicator For MT5 can be very useful for the new position traders as it gives you a good signal.
The Value Charts Indicator For MT5 tends to work like a charm in a higher period. You might be thinking to use it in the 4 hours but to get the best signals, it’s better to focus on a weekly or monthly time frame. The weekly (w1) or monthly (M1) time frame trading can be very monotonous but one good trade can secure the required profit to secure one-month income. So, stop thinking about the aggressive approach. Aggressive traders might have some good times but they can develop themselves as fulltime traders. So, stop acting like the naïve traders in the Forex.
Deciphering the signals
The signals generated in the Value Charts Indicator For MT5 is displayed in two different windows. In the price chart, you will have a small red and a green color arrow pointing to the potential direction. Right below the price chart, you will have a small indicator window with a colored histogram. The histogram is formed based on the colored bars. The red color indicates, sellers have gained control and the price may fall. On the contrary, the green-colored bar shows the strength of the buyers. Before the color shift, we need to focus on the blue bars which give us the trading signals. For your better assessment, we will give you perfect long trade setups in the GBPJPY weekly chart.
Riding the extended bullish rally
Making some serious profit in the Forex market is not an easy task. You might use the Value Charts Indicator For MT5 and have access to the best tools, still, you have to know the organized way to analyze the market data. When you start to focus on the PTM or position trading method, you can even get huge money by riding an extended bullish rally. Let’s find a classic setup in the GBPJPY pair based on a weekly time frame analysis.
Figure: Using Value Charts Indicator For MT5
After the double bottom formation, most of the advanced traders waited for a strong rejection of critical support. But a strong rejection shouldn’t be your trade triggering signal. You have to get signals from the Value Charts Indicator For MT5. Right at the rejection level, the histogram printed blue bars in the indicator window. This suggests potential shifting in price momentum. As a conservative trader, it’s better not to place any trade at the blue bar rather we need to wait for the confirmation. After the blue bar, we have a strong green bar indicating the bulls have won the battle. So, it’s a class set up to place the long in the GBPJPY pair. Notice the extended bullish rally and such a good signal might secure your whole year's profit.
Using a wide stop loss
Being a position or long term trader, you have to master the use of wide stop loss. If you increase the stops, you must decrease the lots to protect your capital. Being a smart trader, you do have the ability to assess the signal strength by using the Value Charts Indicator For MT5.On a perfect signal, you can risk 2-3% but it greatly depends on your tolerance level. Those who have experienced with position trading method might prefer to place an order with 3% exposure. On the contrary, the naïve investors should use the 1% risk exposure since they are still in the learning phase. Never think the high-risk strategy can make you rich. You have respect the concept of ROI to become successful at trading.
Impact fundamental factors
Major news data or fundamental factors are not going to affect the price movement. They might act as price driving catalyst. So, chances are very low, the trades will be stopped out due to unexpected market volatility. However, this should not stop you from learning the proper method of fundamental analysis. But news like interest rate, unemployment claim, or significant decision from the leading officials of a country can cause a major change in trend. But with the help of the Value Charts Indicator For MT5, you can easily spot these variations and protect your trading capital. So, stop forgetting about the major news as it plays a vital role. However, the starting will not be soothing. Get prepared to work really hard to know all the basics. Once you are skilled, you will have zero issues with your trade elections.
If you want to become a position trader without having any trouble, you have to develop your patience level. Patience has always been the key to success in any business. When you look at the Value Charts Indicator For MT5, never try to analyze it in the lower period. Rules in the Forex market are made to protect your trading capital. So, if you fail to inline yourself with the basic rules, it may cause a big loss. Start thinking about this profession as your business. Once you develop the mindset to trade a higher time frame, you will not have a tough time with your business. Stay tuned with the latest news and remember to use a low leverage account.