The Rubicon Indicator – A Comprehensive Review
The Rubicon Indicator is a technical analysis tool designed to help traders identify high-probability entry and exit points in the forex market. Its name comes from the phrase “crossing the Rubicon”, referring to taking an irrevocable step towards achieving a major goal. In this review article, we will provide a comprehensive analysis of the Rubicon Indicator – how it works, its key features and benefits, as well as any potential drawbacks.
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Overview and Background
The Rubicon Indicator was created by a team of professional traders and analysts. It first emerged around 2010 and has continued to be updated and improved over the years.
The indicator is based on price action analysis, studying the “candles in the River of Rubicon” to identify potential trading signals. It aims to help traders confidently enter and exit trades by plotting high-probability signals directly on the chart.
Some key features of the Rubicon Indicator include:
- Real-time buy and sell signals marked directly on the chart
- Confirmed (non-repainting) signals for reliable trade entry/exit points
- Accompanying stop loss and take profit levels
- Applicable on any timeframe or currency pair
So in essence, the Rubicon Indicator does a lot of the analytical work for you and provides actionable, easy-to-follow trading signals. This makes it appealing to novice traders, while more experienced traders may also appreciate having an extra layer of insight.
How the Rubicon Indicator Works
The Rubicon Indicator has a straightforward conceptual framework centered around identifying trends and momentum. It utilizes several technical analysis techniques:
Moving Averages – Two exponential moving averages are plotted, a faster EMA and a slower EMA. Crossovers between the EMAs can signal changes in the trend direction.
Overbought/Oversold Levels – Built-in RSI and Stochastic indicators help identify overbought/oversold conditions.
Candlestick Patterns – The indicator analyzes candlestick patterns to detect continuations or reversals.
Support/Resistance – Key support and resistance levels are identified and plotted on the chart.
By combining these different techniques, the Rubicon Indicator seeks to provide high-probability trading signals. Specifically, it looks for alignment between the indicators – for example, a bullish candlestick pattern occurring near support while an oscillator is in oversold territory.
When the indicator detects such an alignment, it will plot a real-time signal on the chart in orange text. However, these initial real-time signals may repaint as new price data comes in.
Once additional confirmation comes in, the signal will be locked in and change to green for buys or red for sells. The confirmed signals do not repaint, allowing traders to confidently enter positions.
Accompanying each confirmed signal, the indicator will automatically plot stop loss and take profit levels based on recent price action. Traders simply need to adjust their orders to match the indicator’s recommendations.
Overall, while the Rubicon Indicator utilizes some complex analysis under the hood, it presents traders with a clean and straightforward trading system via its plotted signals, stop loss/take profit levels, and trend condition.
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Benefits and Advantages
The Rubicon Indicator offers traders a number of notable benefits:
Ease of Use – The indicator clearly plots signals and trade parameters directly on the chart, requiring little interpretation or analysis from the trader. This makes it ideal for beginners.
Reliability – Trading signals only confirm under strict conditions tested across various markets. The confirmed signals do not repaint, instilling confidence.
Flexibility – The indicator can be applied to any currency pair or timeframe, making it widely applicable.
Customization – Users have some ability to tweak indicator parameters and filters to suit their trading style.
Efficiency – Automated trade signals, stop loss and take profit levels require less manual analysis time.
Insight – Combining multiple indicator techniques provides a deeper perspective into trend and momentum.
Performance – The indicator has demonstrated consistent profitability over a long track record.
These advantages explain much of the Rubicon Indicator’s popularity among traders. It essentially streamlines the complex process of technical analysis down to the most critical, actionable data.
Drawbacks and Limitations
Of course, even the best indicator has some downsides. A few limitations traders should keep in mind include:
False Signals – While signals have a high accuracy rate, false signals can still occur during periods of erratic price action. Paying attention to broader context is still necessary.
Repainting – The initial real-time signals repaint before being confirmed, requiring some patience before placing trades.
Input Required – The indicator provides analysis but still requires the trader to manually enter orders and manage trades. Complete automation is not possible.
Cost – The Rubicon Indicator must be purchased, with pricing starting around $97. The free trial only works on demo accounts.
Steep Learning Curve – Fully understanding how to customize the indicator and interpret signals takes considerable screen time. In-depth training is vital.
So while the Rubicon Indicator certainly makes life easier for traders, it does not eliminate the need for trading knowledge, prudence, and risk management. As with any indicator, it should not be blindly relied upon but rather used as part of a complete trading plan.
Using the Rubicon Indicator in Your Trading
If you decide to purchase the Rubicon Indicator, using it effectively requires following some best practices:
Choose Currency Pairs Wisely – Certain currency pairs with lower spreads and more trending action tend to generate better signals. Pairs like EUR/USD, GBP/USD and USD/JPY are solid choices.
Find the Optimal Timeframe – While the indicator can work on any timeframe, 1 hour, 4 hour and daily charts tend to provide the cleanest signals.
Use Good Risk Management – Respect stop losses on every trade, use take profits to lock in gains, and size positions appropriately to limit risk.
Consider Market Conditions – Factor in volatility, news events, economic data and other market conditions that could impact reliability.
Customize Settings – Take time to experiment with the indicator parameters and filters to match your trading plan.
Adhering to these guidelines will help you maximize the value gained from incorporating the Rubicon Indicator into your trading process.
Rubicon Indicator Pricing
The Rubicon Indicator is sold by the TradeChartist company and is not a free indicator. Current pricing options include:
- 1 License – $97 one-time fee
- Unlimited License – $197 one-time fee
- Monthly Subscription – $27 per month
The company offers a 30-day return policy, allowing you to test it out risk-free on a demo account before purchasing.
Various free alternatives attempt to replicate the Rubicon Indicator for MT4 but they tend to lack features or reliability. Overall the pricing seems reasonable given the extensive development, testing and support behind the TradeChartist version.
Final Verdict
In conclusion, the Rubicon Indicator lives up to its promises as a powerful yet easy-to-use technical analysis tool. It simplifies the trading process without removing skill or discretion entirely. The combination of indicators provides reliable signals, typically with a high accuracy rate.
For novice traders, it serves as an invaluable starting point, providing actionable trade ideas and parameters derived from techniques that would normally require years of screen time to master. More experienced traders can also incorporate it as an extra input in their trading approach.
No indicator is perfect and the Rubicon Indicator will occasionally provide false signals or repaint during volatile markets. Traders should therefore use prudent money management on all trades and understand how to interpret signals based on the broader technical picture.
Overall, the Rubicon Indicator undoubtedly gives traders an edge with technology that mimics what professional analysts are doing. While it comes at a cost, for dedicated forex traders the price is reasonable considering the profit potential. The indicator is best suited to trend trading strategies on major currency pairs using a 1 hour to daily timeframe.