Direction Indicator is a forex trading indicator which is used in metatrader 4 platform. Directional indicator is very suitable for making buy and sell decisions. Direction indicator is advanced technical indicator and this single indicator will give you many information about the price action of the market. The Direction indicator can be used by beginner trader as well. The Direction indicator basically lets you enter in the beginning of the new swing. You can have profitable trading with high level of accuracy if you take trades only in the direction of the general trend of the market.
Direction Indicator is more concerned with direction of the market than anything else. Direction indicator helps you figure out the direction of the ongoing market trend. This indicator will also warn about the potential trend reversals. Direction indicator will also help you know the support and resistance of the market. When the Direction indicator is correctly installed in your trading platform, your chart should look like this:
- Direction indicator
Direction indicator is a combination of several other indicators. This indicator consists of parabolic sar, arrows, and zigzag indicator. Getting all these indicators in a single indicator is a good thing to have. When you see a green arrow below the chart, it’s a buy signal and when you see a red arrow above the chart, it’s a sell signal. These signals should be supported by the parabolic sar.
Buying Conditions Using Direction Indicator.
- Market should be up trending.
- A green arrow should appear below the market.
- Parabolic sar should appear below the market.
- Place your long position as soon as above conditions are met.
- Place your stop loss just below the recent swing low.
- Take your profit when a red arrow appears above the market.
Selling Conditions Using Direction Indicator.
- Market should be down trending.
- A red arrow should appear above the market.
- Parabolic sar should appear above the market.
- Place your short position as soon as above conditions are met.
- Place your stop loss just above the recent swing high.
- Take your profit when a green arrow appears below the market.
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