Fx Smooth indicator is a custom designed technical indicator. This tool consists of a zigzag line that appears on the indicator window. It is very easy to trade with this indicator. Fxsmooth indicator makes it easier to figure out the trend of the market without any difficulties. FxSmooth filters the trend so that you won’t get lost inside the fluctuating waves of the market. FxSmooth indicator can be used to trade in both trending and sideways market but the trending market is always preferred. It can be used in any time frame but you should always keep in mind that trends are clearer on higher time frames comparatively than in lower time frames.
If you are trading in small time frames with FxSmooth indicator, avoid trading during the high impact news events because market are sometimes so unpredictable during such fundamental events that your position gets washed away either way. So the best way to avoid such condition is by not trading during the high impact news.
When you download FxSmooth indicator you get five different files. Each indicator is used for respective currency pairs. There are four different sets of FxSmooth indicators for EUR/USD, GBP/USD, USD/JPY and USD/CHF. However you can also use these indicators in any currency pairs since the formula remains the same even when the currency pair changes.
When Fxsmooth is correctly loaded on your trading platform your chart should look like this:
- FxSmooth Indicator
The main idea of using FxSmooth indicator is you buy when you see green line and sell when you red. It is highly recommened that you trade in the direction of the trend rather than taking counter trend trades. You have better probabilities of winning a trade when you follow the trend. Counter trend trades are quite risky since market may continue to move in its original direction at any time but to win a counter trend trade the market must turn its direction which is hard thing to predict. Anyone could tell that market will go up in an up trending market but only few people could tell when the market changes its direction.
Simply put, always trade in the direction of the trend. You have more probabilities of success.
Buying Conditions Using FxSmooth Indicator.
- Dominant trend on your time frame should be up.
- Wait for FxSmooth indicator to be green.
- Place your stop just below the recent swing low.
- Take profit when the FxSmooth indicator turns red.
Selling Conditions Using FxSmooth Indicator.
- Dominant trend on your time frame should be down.
- Wait for FxSmooth indicator to be red.
- Place your stop just above the recent swing high.
- Take profit when the FxSmooth indicator turns green.
Download Free Forex FxSmooth Indicator