NRTR Color Line Indicator For MT5
Table Of Contents:
- NRTR Color Line Indicator For MT5
- Trading ideas with the NRTR Color Line Indicator For MT5
- NRTR Color Line Indicator For MT5 - Buy Entries
- NRTR Color Line Indicator For MT5 - Sell Entries
- NRTR Color Line Indicator For MT5 - Conclusion
The NRTR Color Line Indicator For MT5 is based on the work of Konstantin Kopyrkin in 2001. The indicator draws reversal entry signals directly on the chart. Similar to a super trend indicator the lines are changing from support to resistance and back again. The change in direction can be used as information of the direction of the trend and to make entry as well as exit decisions.
Partially Automated Trading Besides Your Day Job
Alerts In Real-Time When Divergences Occur
The NRTR Color Line Indicator For MT5 is often regarded as the filter tool for the expert trader. This indicator can easily identity the bullish and bearish momentum in any asset at any time frame.
The indicator was developed by Konstantin Kopyrkin based on Nick Rypock. The indicator draws a colored line segment that tells us about the buying and selling momentum. The blue segment line below the candlestick tells us the price trending higher. On the contrary, a segment of red lines above the candle tells us the market is in a strong downtrend.
But these line segments are dynamic. This means a sudden shift in the market momentum can result in a significant change in the colored line segments drawn by the NRTR color line. Unless you are well aware of the news factor, you might experience a massive change in the colored lines in the lower time frame.
So, a trader should try to execute the trade in a higher time frame at the initial stage as it can significantly improve the win rate. Most importantly, you won’t have to focus on the key news event.
Trading ideas with the NRTR Color Line Indicator For MT5
Before you develop your trading strategy, you have to ask yourself whether you are truly comfortable with your existing system. NRTR Color line is not a standalone indicator that can magically find the buying and selling signal. It’s a booster that helps the retail investors to improve their win rate by ignoring the bad trades.
Test your existing trading method in the demo account and see if you feel comfortable with the current system. If you feel satisfied with your current trading system result, you can think to integrate the NRTR color line indicator. But the integration process needs to be done in a practice account.
And those who are relying on heavily an indicator based trading system must discard the unnecessary indicator from the system. Otherwise, the NRTR Color line indicator data will create conflict with the unnecessary values created by the unwanted indicators in the system. Now let’s see how the indicator can boost the performance of an optimized trading system.
NRTR Color Line Indicator For MT5 - Buy Entries
Since the use of the NRTR Color line indicator is very simple, we will go with the traditional method. Find a strong upward trend in any asset as we will buy the instrument.
This should be done by using your existing trading method. After finding the uptrend in the market, it’s time to spot the potential buying zone. Traders often mark the minor support zone to take the trade but this increases the risk. Look for the major support zone that has the maximum chance to push the price to a new high.
As the price test the major support level, a bullish price action signal should be noticed in the chart. After finding the bullish price action signal in the chart, take a look at the reading of the NRTR Color line indicator. It must have a blue segment line below the candle.
The slope of the blue line segment should be pointing to the south which indicates the price is going for a strong bullish rally. Open your long trade after getting all these confirmations from the chart.
NRTR Color Line Indicator For MT5 - Sell Entries
Everyone knows the reversal trading method is a very tough job. You might have read many articles stating reversal trading can ruin your career. But this is not all true provided that you know how to pick the tops and bottoms.
Picking the tops and bottom is an art and it requires analysis of the higher time frame. Find your major resistance level in the higher time frame and look for the rejection pattern at the key resistance. Before the price starts to fall, you should see a strong consolidation pattern indicating the bears are slowly getting stronger.
Consolidation at the top of the uptrend suggests a strong bullish breakout or a major reversal. If the consolidation patterns break with a strong bearish candle, you need to move to the NRTR color line indicator. The indicator should print a red line above the candle. Wait for 4-5 candles and see if the bearish break is false or not.
If you see the consolidation level is acting as a strong resistance and the color of the NRTR color line indicator is still red, you can open the short trade. Since you are betting against the trend, the minimum risk to reward ratio must be 1:5. If you trade with a low risk to reward ratio, the reversal trading method is not the right suited trading system.
For the risk factor, you have to keep the risk below 1%. In case you take the reversal trade in the daily or the weekly time frame, you can increase the risk to 2%.
NRTR Color Line Indicator For MT5 - Conclusion
Though the NRTR color line indicator is dynamic it can help the investors to spot the quality signals. It’s not a tool that will tell you where to buy or sell. You have to find the trading points by analyzing the support and resistance.
As you find the support and resistance in the chart, you need to use the guidelines stated in this article. But the guidelines will not work unless your system is capable of generating a decent win rate at any state of the market. If you are not sure about the success rate of your trading method, you can test your strategy in a practice account.
During that time, you can also embed the NRTR color line indicator into the system. See how the system works with the new indicator. If you find it hard to take the trades, you should switch to different instruments. Instead of trying to take the trades in the ranging market, you should be looking to open new orders in the trending market.
Even if you trade reversal, it will be much easier than trading the range-bound price. So, the selection of the trading instrument plays an important role in the success of the NRTR Color line indicator.
