This is a trend indicator. It simply indicates the current predominant trend in the Forex market prices. It is for the intraday and long term traders. It is not recommended for the Forex scalpers since it is not designed to give precise signals when the market prices change by small amounts. This is a perfect choice for the trading beginners.
The indicator works with all the currency pairs and on all the timeframes. The change of the timeframe will only affect the rate at which the indicator gives its signals. When using a tight timeframe, the indicator will tend to give signals more often than when using a longer timeframe. This indicator is also perfect for use with most of the brokers’ platform provided that the platforms are MT4s.
The indicator is a non-repaint and its efficiency is around 85%. It is programmed in such a way that it is able to detect and indicate any slight market trend changes predicted. Unlike most of the swing indicators, this indicator is able to clearly show the retracements in the market trends.
The Forex Trend Champion indicator is displayed on a separate chart below the main trading chart. The indicators chart is divided into two sections by a neutral (zero) line. The height of the two sections differ according to the length of the bars on each side. On the right side of the indicator’s chart, you will notice a scale that is positive above the zero line and negative below the zero line. The maximum value of the positive side is not in most cases equal to the value of the minimum negative value.
The indicator is responsible for the generation of green and red bars on either side of the neutral line. The red bars indicate that there is a general downward trend and are formed below the zero line while the green bars indicate that there is a general upward trend of the market prices and are formed on the upper side of the zero line. If you look closely you will find out that and slight movement of the market prices is reflected on the indicator. For example, if the bars being displayed are green showing an uptrend and the market prices decreases by some significant amount over some candlesticks and then starts to increase again, this will be reflected in the length of the bars on the indicator’s chart.
Fig.1. The Forex Trend Champion indicator.
The signals of this indicator are considered to be the transition between the different colored bars. When the length of the bars starts to decrease and they do so over long period (several bars showing consecutive decrease in their heights), it shows that the trend of the market prices is posed to change. However the trader should wait until the color of the bars change.
Using the Forex Trend Champion indicator
When trading the trader should put the following things in mind:
- When the color of the bars changes from red to green, it is time to place a buy.
- When the color of the bars change from green to red, it is time to place a sell.
- The trader should always be cautious of the length of the bars in the indicators chart.
- The orders should only be placed at the second or third bar in the indicator’s chart is formed rather than at the first bar.
- No trade should be placed after the fourth bar.
- All trades should have a stop loss and a take profit.
When it come to take profits, the trader should place a take profit at 20pips and a stop loss at the previous day lowest point. However if none of the stops is hit and the length of the indicator’s bars starts to decrease, the trader should close the order and wait for the length to start increasing again to places a similar order.
Fig.2. Placing orders using the Forex Trend Champion indicator.
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