This is a trend indicator. The indicator is a relatively simple to use indicator and recommended for the Forex trading beginners. It is based on the volume and counted bars.
It is best for any kind of a Forex trader; whether he or she is a scalper, a long term trader or an intraday trader. The rate of placing and closing your trades will depend on the timeframe that you chose to use. If you use a tight timeframe, you shall be opening and closing you orders at a faster rate than if you decide to use a lager timeframe.
Understanding the working of the I_sadukey_v1 indicator.
The I_sadukey_v1 indicator is displayed on the main trading chart. It is displayed as a line that follows the market prices and changes its color depending on the trend that is determined to be prevailing at the time. The line is formed of small boxes whose length varies depending on the strength of the trend. If the trend strength is high, the length of the boxes will increase and decrease when the strength of the trend decreases. Each box forming the line is formed corresponding to every candlestick that is formed.
The boxes that form the line are either blue or red depending on the trend. Contrary to the other indicators where the red shows a down trend and the blue an uptrend, this indicator uses red to indicate an uptrend and the red to indicate a down trend.
Fig.1. The i_sadukey_v1 indicator.
The red boxed section of the line is displayed below the candlesticks while the blue boxed section is formed above the candlesticks. But rather than most indicators that give their signal when the market prices crosses the indicator line, this indicator takes some time before giving the signal which helps in alienating the false signals.
When you drag the indicator or insert the indicator onto the trading chart, the custom indicator i_sadukey_v1 pop up window will appear. If you press the input button, you shall see two inputs which are the countBars and nd. The countbars is set to 1000 by default, indicating the number of already formed bar/candlesticks the indicator will count on the chart once loaded/inserted. If you decrease the countbars value, the indicator will be displayed on a lesser number of already formed candlesticks on the chart when first inserted and the opposite occurs when the value is increased. The nd on the other hand is used to define the number of boxes that will be formed in the line. The least value that you can use for the nd value is 2; where blue or red long bars will be displayed at one point rather than being spread over a long section of the line. If a value of 1 is used on the nd value, nothing will be displayed.
Using the i_sadukey_v1 indicator to place and close orders.
Buy orders are placed when the line section turns to Red while sell orders are placed when the line section turns to blue. Orders are places in the third or second candlestick to be formed after the color change. No trade should be done/placed after the forth candlestick; the trader should wait for the next signal or look for a signal from other currency pairs or in other timeframes.
Fig.2. Using the i_sadukey_v1 indicator to trade.
Trades are closed when the indicator gives an opposite signal. The sell positions are closed when the color changes to red and the buy orders are closed when the color changes to blue.
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