This indicator was developed by Mr. Andrea who is from Spain. It is indiscriminate of the currency pairs being traded; it can be used to trade any currency pair. It will depend on the trader to choose the currency pairs that he or she is best fond of trading.
This indicator is displayed on a separate window below the main trading window. It is very easy to use one the working is understood. Also the indicator gives very precise information while keeping all the rest of the unnecessary stuff to itself. It is actually a very god choice for the Forex beginners as the forex Professionals as well.
The Coronforex indicator forms a band of square shaped colored boxes along a straight line in its chart. The colors of the boxes vary between green, yellow and red. The main colors are the green and red colors. This are the colors to watch out for before opening any trade. These two indicate a change in the market trends. The yellow on the other hand is for showing that the market trend that is acquired is going to go on for some time. Therefore the trading signals are when the color changes from red to yellow and when the color changes from green to yellow. In all cases, the trade should be placed after yellow colored box is formed.
Fig.1. Feature of the Coronforex indicator.
It is a very dynamic indicator and can be used by almost any kind of a trader.
It will all depend on the timeframe that the trader decides to use. If the trader decides to use a tight timeframe like the M5, then the indicator will be giving trading signal very often and the trader will be forced to scalp if he or she is to open a trade upon every signal provided. However, if the trader decides to use a higher timeframe like the D1, then he or she will be doing long term trading since the signals will be given on a long term may be once in two days.
From the above two charts it is evident that the timeframe chosen affects the trading due to the number of signals produced.
How to use the Coronforex indicator to open trades.
There are some things that the trader should take note off before opening any trade. These include:
- No trade should be opened when the RED colored boxes are being displayed on the indicator’s chart.
- No trade should be opened when the GREEN colored boxes are being displayed on the indicator’s chart
- At all times the trades should be placed after the color changes form red or green to YELLOW.
- You have to be patient for the indicator to give its signals for you to either open or close your trades. If you close your trades before the indicator says so you may end up making a loss due to fear or closing your profits prematurely.
Opening a sell position:
The trader should open a sell when the colour of the boxes changes from red to yellow. The order should be placed at the beginning of the formation of the next candlestick in the main trading chart after the first yellow box is formed. The order should then be closed when a green box is formed.
Fig.2. Opening a sell.
Opening a buy position:
The trader should open a buy when the colour of the boxes changes from green to yellow. The order should be placed at the beginning of the formation of the next candlestick in the main trading chart after the first yellow box is formed. The order should then be closed when a red box is formed.
Fig.3. Opening a buy.
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