RFTL Indicator For MT5
Table Of Contents:
- RFTL Indicator For MT5
- Trading ideas with the RFTL Indicator For MT5
- RFTL Indicator For MT5 - Buy Entries
- RFTL Indicator For MT5 - Sell Entries
- RFTL Indicator For MT5 - Conclusion
The RFTL Indicator For MT5 is based on the Reference Fast Trend Line calculation method. The indicator draws a blue line on the chart which similar to a moving average. If the price is leading the line then a strong trend is signaled.
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Alerts In Real-Time When Divergences Occur
The RFTL Indicator For MT5 is a powerful cyclic trend change indicator. But the data are represented more like the moving average format so that the investors can take important data without having much trouble.
This classic indicator was developed by Vladimir Kravchuk who perfectly knew the market cycle has repetitive nature. If you carefully study the price movement of any instrument, you will notice, the price is following the historic movement.
RFTL indicator is also known as the Reference Fast Trend Line. The indicator analyzes the price deviation and the dynamic momentum of the instrument and creates a digital filter. The filtering process is done based on FLF-1 and FLF-2.
The good thing is, Vladimir Kravchuk has embedded all the complex codes and created a simple readable data for this indicator. The indicator creates an aquamarine color signal line that matches the price movement and provides important data regarding the future price movement.
Trading ideas with the RFTL Indicator For MT5
Some of you might be puzzled by seeing the complex introduction for the RFTL indicator. But after going through the complete content, you will say, this is by far one of the most easiest and reliable indicators to use in this market.
But to get benefit from this amazing indicator, the users have to depend on simple math that focuses on the important support and resistance level for this instrument. Before you start using the indicator, you have to use a trading strategy that can help you to take the trades at the condition of the market.
You should be able to find trade setup and different phases of the trend with your existing strategy. Once you are assured that your existing system is capable of dealing with the critical signals, its time to learn about the integration of the RFTL indicator.
The aquamarine line will convey an important message about the potential trade setups. If you can do things in the right manner, you do have a chance to improve your strategy significantly.
RFTL Indicator For MT5 - Buy Entries
In this step, we will discuss how a trend trading strategy can be improved with the help of this indicator. People who usually rely on the major trend often become frustrated since they don’t have the skills to analyze the important metrics.
They miss most of the major market movement while trying to take trades with trends. Eventually, they lose money since the market goes into the retracement phase when the trades are executed. But if you consider the slope of the RFTL indicator line, you won’t have to face any problem.
As the price test the support level, the slope of the RFTL indicator line will be pointing south. The negative slope of the aquamarine line suggests us the price is not finished its testing. Wait till the aquamarine line start gaining the positive slope.
As the adaptive line of the indicator starts heading towards the north, it is a good sign that the buyers have taken control of this market. Open up the long trade with low risk and analyze the risk potentials.
Some traders get confused about the role of money management when they use the RFTL line as an active filter. No indicators give the guarantee that a certain trade will hit the take-profit zone. So, be prepared for the worst-case scenario at all the time.
RFTL Indicator For MT5 - Sell Entries
This step is going to a bit tricky, as people don’t have the idea that the reversal trading technique is going to be so easy. In this segment, we will show you the exact way to use the RFTL indicator to trade on major reversal.
The system that you need to use for the reversal trading approach must be in a higher time frame. In case you want to trade reversal in the lower chart, you must have a strong idea about the support and resistance.
In some cases, traders use the major chart pattern as it improves the win rate of reversal trading strategy significantly. Unless you do things in the perfect order, it will be a very big challenge. Look at the slope of the RFTL line when you spot the bearish trade setup. As you find the bearish trade setup in the chart, you should see the aquamarine line slowly heading south.
It will also form a sharp peak at the chart which indicates the price is ready for a big drop. Analyze the potential risk to reward ratio so that you don’t end up with a bad trade that has a high chance to win. Always be ready to accept the unexpected no matter how many filters you use. But people who have mastered the perfect way to use the RFTL indicator is doing relatively well since they know the proper way to eliminate the trades.
RFTL Indicator For MT5 - Conclusion
Indicator based trading strategy needs to be handled with care. People who heavily rely on complicated indicators usually fail to get the best results as they don’t have the skills to use the tools as a filter. The moment you consider indicator as prime trading tools other than filter is the very moment you start getting disoriented.
To get the best results, investors are requested to take learn to use the RFTL indicator in the practice account. The cyclic data of the indicator is shown in the simple moving average format. People who have strong analytical skills or knowledge about the moving average can easily filter the good trades with the aquamarine color line.
Investment is not a complicated business provided that you know the exact steps that define high-quality trade setups. Things might be out of order when you start things but go with the flow of the market. Learn to respect the trend and execute trades by following the basic norms. As you get skilled, learn to trade in the reversal.
Slowly integrate the smart RFTL indicator to your existing trading strategy and start ignoring the bad signals just by analyzing the aquamarine color curve. The strategic use of this line can help you take trades at the perfect time.
