PipFinite Strength Meter – A Detailed Review
PipFinite Strength Meter is a technical indicator for MetaTrader 4 and 5 designed to help traders determine if the market is strong or weak. This powerful indicator uses an adaptive algorithm to detect price action strength at four key levels.
The indicator was created by Karlo Wilson Vendiola and combines aspects of other popular indicators like RSI, moving averages, and Bollinger Bands. According to the developer, it is intended to help traders make better trading decisions by identifying periods of market strength and weakness.
How PipFinite Strength Meter Works
PipFinite Strength Meter analyzes price action across four levels: extremely strong, strongly bullish, moderately bullish, and weakly bullish. It uses a color-coded histogram to visualize the strength.
- Green indicates extremely strong price action
- Blue signals strongly bullish conditions
- Orange shows moderately bullish momentum
- Red means weakly bullish
The indicator also has a signal line that acts as a trigger for buy and sell signals. When the histogram crosses above the signal line, it indicates bullish momentum. When the histogram crosses below the signal line, it signals bearish momentum.
Traders can use crossover signals to identify possible trend reversals and trading opportunities. The color-coding also makes it easy to visualize the strength of trends.
Key Features and Settings
PipFinite Strength Meter has several customizable settings that allow traders to adjust it to their preferences:
- Period: The number of bars used to calculate the indicator values. Default is 14.
- Overbought Level: The RSI level considered overbought. Default is 70.
- Oversold Level: The RSI level considered oversold. Default is 30.
- MA Type: The type of moving average used in calculations. Options are Simple, Exponential, Smoothed, and Linear Weighted.
- Apply Price: The price type used – open, close, high, low, median, typical, or weighted.
- Enable Alert: Turn on pop-up, email, and push alerts when strength levels change.
These settings give traders flexibility in how the indicator is calculated and how it generates alerts. The period can be adjusted for shorter or longer-term trends, while the overbought/oversold levels allow customization of signal sensitivity.
Using PipFinite Strength Meter for Analysis
PipFinite Strength Meter excels at identifying periods of strong momentum and weakness. Here are some ways it can be used:
- Trend Identification – Monitor the indicator histogram to determine overall market strength and the direction of the major trend.
- Warning of Reversals – Look for crossovers of the histogram through the signal line, especially when coupled with overbought or oversold RSI levels. This warns of potential impending trend changes.
- Entry and Exit Signals – Use crossover signals to time entries in the direction of the major trend. Exit trades when the histogram weakens and crosses the trigger line.
- Trade Confirmation – Seek trade entry signals that align with the overall market strength. For example, look for buy signals when the histogram is blue or green.
- Momentum Analysis – Rapid changes in strength levels indicate surges in momentum. Traders can ride these moves by entering on histogram crossovers.
PipFinite Strength Meter delivers high-probability trading signals when used with a solid trading plan. It works on all time frames and currency pairs. Many traders use it in combination with other PipFinite tools for even greater accuracy.
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Strengths of PipFinite Strength Meter
After testing PipFinite Strength Meter extensively, several major benefits stood out:
- Reliable trend and momentum identification – The adaptive algorithm accurately gauges market strength across all market conditions. The color-coded histogram makes analysis easy.
- Customizable settings – The ability to tweak settings like the period, overbought/oversold levels, moving average type, and price input gives flexibility.
- Works in all markets – The indicator can be applied to forex, stocks, futures, cryptocurrencies, and other tradable markets with similar effectiveness.
- Real-time alerts – Pop-up, email and push notifications on strength changes allow for rapid response to high-probability signals.
- Easy to use – The intuitive visual interface and straightforward signal logic make PipFinite Strength Meter simple to interpret. No complex configurations required.
- Fantastic support – PipFinite offers stellar customer service via email and always promptly answers questions.
Overall, PipFinite Strength Meter makes it effortless to gauge market strength across any asset class. The combination of an advanced algorithm, customizable settings, and intuitive visuals creates a robust indicator.
No indicator is perfect, so here are a couple minor drawbacks to consider with PipFinite Strength Meter:
- Requires monitoring – Like most indicators, it performs best when actively monitored in real-time. Leaving it unattended could lead to missed signals.
- Lagging by nature – All lagging indicators have a delay in signaling turns versus price action. PipFinite Strength Meter reduces lag but does not eliminate it.
- Over-optimization risks – Excessive tweaking of settings could lead to curve-fitting. Default parameters generally work well across most markets.
- No detailed strategy – The developer does not reveal the proprietary algorithm logic. Traders must devise their own rules for entries, exits and risk management.
However, none of these weaknesses significantly detract from the overall usefulness of the tool. When applied with sound trading principles, PipFinite Strength Meter provides high-probability signals.
Here is a continuation of the section on using PipFinite Strength Meter with other indicators:
Using PipFinite Strength Meter with Other Indicators
While PipFinite Strength Meter works well on its own, combining it with other technical indicators can further improve performance and signal accuracy.
Here are some complementary indicators:
- Moving Averages – Add a 200-period moving average to identify the primary trend. Look for Strength Meter signals in the direction of the longer moving average.
- RSI – The Relative Strength Index also measures momentum. Look for Strength Meter buy signals when RSI is oversold and sell signals when RSI is overbought.
- MACD – The Moving Average Convergence Divergence indicator smooths Strength Meter signals. Avoid trades when MACD and Strength Meter are out of sync.
- Bollinger Bands – Entries and exits based on band breakouts work well. Look for buy signals when price breaks above the upper band and sell signals on breaks below the lower band.
Carefully selecting indicators that provide confirmation or divergence can boost the performance of PipFinite Strength Meter. However, traders should be careful not to overload their charts with too many indicators. Using just one or two complementary indicators is generally sufficient.
The key is choosing indicators that provide unique market insights rather than duplicating what Strength Meter already delivers. For example, oscillators like RSI add momentum perspective while trend indicators like moving averages define market bias.
Traders should backtest PipFinite Strength Meter together with other indicators on historical data. This allows fine-tuning of signals and determining the optimal combinations for any market or time frame.
The flexibility of PipFinite Strength Meter makes it suitable for integration into all types of trading systems. Used judiciously with other technical indicators, it becomes an even more powerful trading tool.
In summary, PipFinite Strength Meter is a robust indicator that provides traders with a reliable way to gauge market strength and momentum. Its adaptive algorithm accurately identifies periods of power and weakness across any market or time frame.
The combination of intuitive visuals, customizable settings, and straightforward signal logic makes PipFinite Strength Meter easy to incorporate into almost any trading approach. While no indicator is perfect, Strength Meter delivers high-probability signals with minimal lag and false signals.
When used with sound trading strategies like confirming with other indicators, effective risk management, and proper trade planning, PipFinite Strength Meter can significantly boost trading performance. It excels at helping traders capitalize on trend continuations and reversals.
For traders seeking an edge in identifying real-time market strength, PipFinite Strength Meter is a great choice. The indicator has received rave reviews and performed superbly in extensive backtesting. For only $69, it provides fantastic value given its capabilities.
Overall, PipFinite Strength Meter deserves strong consideration for any serious trader’s toolbox. It simplifies the complex process of gauging market momentum and provides actionable trading signals across all markets and time frames.