Reliable indicator of market entry signals. Dot indicator without redrawing Dots
We present you an indicator that, despite its simplicity, has earned recognition among many novice and experienced forex traders. With the help of the points that the Dots indicator places on the quotes charts, this indicator quite accurately shows the entry and exit points when making transactions in the Forex market. This means that it can effectively complement any scalping or positional trading strategies.
How the indicator worksDots
Let's start with the fact that the points that Dots use to confirm the places for entering the market (when making deals) and exiting the market (when closing them) are not redrawn. And analyzing enough accurate signals of this indicator, we can say that Dots demonstrates the current dynamics of price movement much more accurately than most other indicators from the MT4 platform and shows a trend reversal one of the first.
The appearance of the Dots indicator on the quotes chart
In other words, when the direction of the trend begins to change, the Dots indicator will demonstrate this faster than anyone else, which will help you make a trading decision more quickly.
The mechanism of this indicator is very simple. By analyzing the slope of the moving averages, as well as taking into account the open / close prices of candles, Dots demonstrates the direction of the trend and its change, for which it places points of two colors on the quotes chart:
- Blue - trend up
- Red - trend down:
Indicator signals
As you can imagine, the main indicator signal is a change in the color of the dots. Accordingly, the trading signals for entering and exiting when making and closing deals will be as follows:
- Change from blue to red - a place to enter the market for sell (or exit from buy trades)
- Change from red to blue - a place to enter the market for purchases (or exit from transactions for sale):
As you can see, during a trend in the Forex market, this indicator shows fairly accurate and stable trading signals and, most importantly, keeps the trader from leaving the market prematurely, allowing you to take the maximum number of points from each transaction.
However, during a flat, Dots can give a lot of false signals. Therefore, it is better to use it in conjunction with trend-following indicators and at the most volatile time of the day.
As it was written above, Dots uses ordinary moving averages to analyze the price chart. And as we know, this type of technical indicator is considered one of the most effective and accurate. According to professional traders and analysts, traders make much more money using moving averages than using all the other indicators combined. But this does not mean that only Dots can be used when trading, and other Forex indicators should be neglected. On the contrary, we recommend using Dots along with additional filters and trend-following technical indicators.
For example, using the same moving averages, only of an older period, you can determine the global trend and trade only in its direction. That is, it is effective to find places for entering into and out of deals, as well as filter out unprofitable signals.
additional information
Also, Dots can become a unique component for an already assembled complex. trading system... Thus, you get a successful extension of the strategy due to a more accurate implementation of moving average signals. For example, here's how Dots will look profitable in a strategy that uses moving averages and the MACD indicator. When moving averages cross, we get a primary signal of a trend change, which must be confirmed. the MACD indicator... Next, we are waiting for the price correction in reverse side and enter the market when the trend continues according to the Dots indicator signal:
Recently on our website we published an article about a unique scalping indicator Contrast ... In our opinion, by combining Contrast and Dots on one quote chart, you can get the perfect picture for scalping.
Thanks to the unique algorithm of the Forex Contrast indicator, you get an excellent filter that determines the direction of entering the market (histogram squares of the same color - at least three tuffframes). Whereas, with the help of Dots signals, you will receive an excellent signal about the possibility of making deals. As a result, the joint work of these indicators will allow you to filter out more than half of unprofitable trades and significantly increase the profit factor of your trading strategy:
An example of using the Dots and Contrast indicators within one trading strategy
Dots indicator setting
While using this indicator, a trader can change some of the input parameters.
Forex indicators showing entry and exit points help traders understand the situation when it is better to make a deal, as well as understand how the price will change in a certain time period.
The foreign exchange market is constantly changing, as it is influenced by numerous factors, which creates a difficult environment for traders. But if you clearly recognize the exact signals, then you can trade with the highest efficiency. This is what Forex indicators are used for, showing entry and exit points.
Today, we will consider the most precise algorithms which became the most popular among traders in 2017.
What are and how are Forex indicators showing entry and exit points divided?
To obtain stable profits, traders need to constantly analyze the price movement charts for traded instruments. Conducting analysis helps in predicting further price changes, knowing which are used for accurate market entries or timely exit from the market in order to avoid investment losses.
And for a more efficient flow of the process, market traders use the most accurate algorithms for issuing entry / exit points on the Forex market... Moreover, some Forex indicators can be used as ready-made full-fledged trading systems.
So what are Forex indicators?
Indicators are small software utilities with built-in algorithms that calculate profits and losses, and finally, showing entry points or the most accurate exit points from the market.
These algorithms perform complex mathematical calculations using data on prices and volumes of past periods. In fact, Forex indicators take into account data on price movements in the past and make forecasts for the future based on them.
All Forex indicators used by traders to find entry / exit points are divided into 2 types:
Auxiliary. This type of indicators is not used directly for opening deals. Providing accurate signals to open deals. Immediately, we note that Forex indicators that form entry / exit points do not have to draw exactly the points at which you will open orders on the chart.Here, it will be sufficient for the occurrence of specific conditions under which transactions can be concluded.
Using Forex indicators of both categories, a trader can build a fairly effective trading system, while not using any exotic algorithms, but only those that are available in the standard MT4 or MT5 set.
An overview of the most accurate Forex indicators in trading, showing the entry / exit points of the market
Stochastic Oscillator
Considering these indicators, which became the most popular in 2017, one cannot help but dwell on the standard for trading terminal algorithm - Stochastic Oscillator. Although this indicator does not draw dots or arrows on the chart itself (as we talked about above), it gives the most accurate signals.
Trading here is conducted from levels, therefore, when working with this algorithm, you should pay special attention to how slow and fast lines behave, as well as how they are located relative to the oversold / overbought area.
When a slow line is crossed, it is quickly and simultaneously exited from oversold conditions, you can safely open a buy order - it is simply impossible to interpret such a signal in two ways.
Moving Average (MA)
Also, the usual moving average was widely popular in 2017 when analyzing entry and exit points.
Note: these indicators, as a moving average, can be used both for identifying a trend, searching for points of trend initiation, and for successfully determining an entry / exit point.
In the category of indicators showing entry and exit points, this algorithm allows us to write such a fact as the crossing of MA by the price.
The main signal here will be the moment when the candlestick closes higher from the moving one. Do not forget that you need to use a number of filters.
Of course, there are other standard Forex indicators for MT4 and MT5, showing entry and exit points, but we are only interested in the most accurate and popular in 2017, so the choice fell on these two algorithms.
How to determine the optimal entry point by combining several indicators?
Custom Forex Indicators showing entry and exit points by candlestick combinations
CPI indicator
Custom indicators for entry / exit points are the most accurate algorithms created with maximum ease of use, since traders see those indicators (arrows, dots ...) on the charts that indicate the optimal direction for opening deals.
The classic representatives of the algorithms of this group include all kinds of Forex recognizing indicators. As a rule, the indicator writes the name of the pattern under or above the candlestick and draws an arrow.
The CPI indicator can be cited as an example of such an algorithm, and in addition to its clarity and simplicity, it is not redrawn on the chart yet.
Forex indicators showing entry and exit points from levels
There are custom indicators, which are used to trade from levels. That is, it is based on the breakout of an important level.
Fruity Pebbles indicator showing entry / exit points from pivot levels
These algorithms include, for example, the Fruity Pebbles indicator. This indicator is based on, while in order not to clutter up the charts, the levels themselves do not appear.
All that you will see on the trading chart is a solid line indicating the level of opening deals and multi-colored crosses. Take Profit levels are marked in red.
Darma System indicator showing I / O points by level
The Darma System indicator, which is used in strategy of the same name trade, which is especially popular in 2017. Here, the trader needs to focus on the vertical band and colored dots.
To make a purchase, it is necessary for the bar to turn blue, and the point below it also turns blue. For sales, the color must be red.
Test_5closeUp indicator, for analyzing entry / exit points from levels
At first glance, the seemingly simple Test_5closeUp algorithm, in fact, is a combination of several indicators at once, which are included in the standard set of the trading terminal:
- Stochastic,
At the same time, on the chart itself, you will see only arrows that indicate the direction of opening an order and colored squares that are signals of preliminary readiness.
In general, standard Forex indicators are very often used to create custom algorithms as a framework.
For example, the T3MA Alarm indicator is based on only one moving one, and the algorithm draws the signal arrows after the price breaks the MA.
If you choose indicators showing entry and exit points and want to get the most accurate algorithms, then you should follow simple rule- "- understandable switchmen". In other words, the signals provided by the Forex indicators should be logical, and their direct algorithm should be available for study.
Stochastic_Cross_Alert is another indicator showing entry and exit points
As an example, I'll mention a very robust design called Stochastic_Cross_Alert. As you may have guessed, this algorithm for indicating entry and exit points is developed on the basis of a stochastic oscillator, but its appearance is completely different:
The developers have removed everything unnecessary on the chart and you only see arrows that appear at the moments when the signal line leaves the oversold / overbought zones.
To better understand the markup, let's compare the classic oscillator with Stochastic_Cross_Alert with the same settings:
As you can see, there is absolutely no difference in the signals. Therefore, you can not only save space on the chart when using this algorithm, but also react to market changes more quickly and efficiently.
In conclusion, we note that, although we have considered the most accurate Forex, showing entry and exit points, the most popular in 2017, but which one is best suited for your trading system, it is up to you to decide. Since a universal algorithm that allows you to get income without difficulty has not yet been invented, therefore, when analyzing various data, take into account all aspects.
Indicator strategy for analyzing market entry points
Forex level indicators are considered the best tools that are equally convenient for a beginner and a pro to work with. This is due to the fact that they accurately and objectively draw the market area and adjust the chart without the intervention of a trader.
In this article, you will learn the features of using the AUTO FIBO indicator suitable for any timeframe and trading strategy. To download the tool, click.
Customization
When this accurate indicator market entry will be added to the root folder of Metatrader, you need to restart the terminal. After that, go to the "List of Indicators" - "Custom" section and select AUTO FIBO.
It is better not to change all the settings, except for the color of the levels. The default is yellow, which does not appear clearly in the black and white color scheme.
AUTO FIBO indicator on the chart
The AUTO FIBO indicator can be used for the following purposes:
Peculiarities:
- AUTO FIBO calculates correction levels based on points that act as the nearest highs / lows.
- The levels are tied to the timeframe and the specified scale, therefore, if they change, they are automatically rebuilt.
- The green rectangle denotes the area in which the probability of correction is maximum.
Forex trading indicators are constantly updated and improved. However, by setting AUTO FIBO, you will solve the problem with the Fibonacci levels marking forever. Try it.
P.S. Friends, do not forget to share your impressions of AUTO FIBO in the comments.
Any seasoned trader will agree that one of the most important aspects Forex trading is the correct choice of the entry point, and also the exit point from the market.
Here, it is extremely important to choose exact positions so that the deal will bring as many benefits as possible. But for this, everything is determined by your experience and personal preferences, which form this or that. But, and, of course, it is important to choose the correct entry indicator.
It would be nice to use an Expert Advisor that gives signals to open trades without errors. But that doesn't exist... However, you can find a lot of options that are close to this goal.
Market entry indicator - Stochastic, as a method for determining the most accurate signals to enter and exit a position
One of the most qualitative indicators of market entry is Stochastic. It has been on Forex for a long time. And they even give preference to him experienced traders, for which, in fact, indicators are only a time saver, and not the only way to make money, as for novice users.
Details about the Stochastic indicator in Forex
It is important to understand that the moment of exit is just as important as it is. Since even a favorable moment of entry will not bring profit if you do not close the deal in a timely manner. However, this article focuses exclusively on exit points.
Features of the market entry indicator
As an example, we chose Stochastic for a reason. It is quite common and simple. After installing the indicator, you should mount this instrument on the chart. This indicator is universal, so the choice of a pair depends only on you.
In order to place it on the chart, you just need to drag it from the navigator window with the mouse. You can just double-click the mouse.
Above on the chart, we will analyze the main parameters and functions of the indicator:
Green arrows are a signal to buy currency. Red, respectively, indicate that it is time to sell the currency.When the beeps are turned on, a new arrow appears. In this case, you can hear a sound that the work is being simplified.
In addition, there is an option to send notifications, which indicates the appearance of a new entry point. This is quite convenient, since the notification is sent by e-mail. But not all market entry indicators are equipped with this function. Therefore, be careful when choosing the appropriate tool.
I wonder how it is customary to determine the exact signals to enter the Forex market?
In fact, everything is somewhat simpler here than it might seem to a beginner. In general, two signals are used. Or rather, signals from two indicators. This is our Stochastic and traditionally moving average.
At the same time, buy and sell signals appear only when certain stochastic and moving signals coincide. As for the description of additional settings, they are located in the text file of the archive of one or another indicator.
How do trend and flat affect the accuracy of signals to enter a position (deal) in the market?
It should be understood that the accuracy of entering the market always depends on which instruments are used. For example, if the indicators you have chosen are of a trend nature, then it is better for the EA to work directly in the trend. If, on the contrary, the market is flat, in this case you run the risk of getting a lot of wrong signals that brought not profit, but only losses.
The described indicator in our article combines the possibilities of both flat and. This is due to the fact that it uses signals from the Stochastic indicator, which perfectly demonstrates the buy and sell levels, as well as the moving average, which is a trend indicator. Stochastic has several moving averages that have different settings. This allows you to enter Forex more correctly, especially after registering the crossing of movings.
If you look closely, you will see that many signals in history, well, for about a couple of hours were not the same as they turned out to be in the end... That is, not all of them were profitable. But this significant drawback is compensated for. After all, as we have already mentioned, it can be used to trade on any quotes.
For additional filtering, which increases the chances of a successful trade, you can use an alternative tool. For example, this applies to or.
Even trivial trading on long-term trends can become such an alternative. Due to this, the number of entries to the market is reduced. Moreover, the trader's chances of making a profit are significantly increased.
Determining the exact signals to enter a position (deal) and exit it
It is definitely necessary to enter positions by accurate signals. There are only a few types of them. We will consider the most popular ones. By far the simplest and at the same time accurate Forex signal is the third point of rebound of value from the line of the current trend.
At the moment of the manifestation of the situation with the value on the chart, which has made a correction from the trend twice, certain measures should be taken. Moreover, when the last point is formed slightly higher or lower in a downtrend from the point that followed before this, the third position is formed.This indicates an accurate signal about the need to open a deal according to any trend.
To accurately consider the rebound on the chart, you need to carry out the identified actions associated with. It is desirable for the two previous extrema. For a clearer explanation, we present the graph below.
When such an accurate signal occurs, it is necessary to start setting points at local extrema.The next accurate signal is the opening of an opposite trade directly from the trend. Further, in case of a reverse price movement, it is better not to hesitate. Under observation downtrend draw a trend line. Good luck!
Correct entry points to a position (deal) by the indicator
We present you an indicator that, despite its simplicity, has earned recognition among many novice and experienced forex traders. With the help of the points that the Dots indicator places on the quotes charts, this indicator quite accurately shows the entry and exit points when making transactions in the Forex market. This means that it can effectively complement any scalping or positional trading strategies.
How the indicator worksDots
Let's start with the fact that the points that Dots use to confirm the places for entering the market (when making deals) and exiting the market (when closing them) are not redrawn. And analyzing the sufficiently accurate signals of this indicator, we can say that Dots demonstrates the current dynamics of price movement much more accurately than most other indicators from the MT4 platform and shows a trend reversal one of the first.
The appearance of the Dots indicator on the quotes chart
In other words, when the direction of the trend begins to change, the Dots indicator will demonstrate this faster than anyone else, which will help you make a trading decision more quickly.
The mechanism of this indicator is very simple. By analyzing the slope of the moving averages, as well as taking into account the open / close prices of candles, Dots demonstrates the direction of the trend and its change, for which it places points of two colors on the quotes chart:
- Blue - trend up
- Red - trend down:
Indicator signals
As you can imagine, the main indicator signal is a change in the color of the dots. Accordingly, the trading signals for entering and exiting when making and closing deals will be as follows:
- Change from blue to red - a place to enter the market for sell (or exit from buy trades)
- Change from red to blue - a place to enter the market for purchases (or exit from transactions for sale):
As you can see, during a trend in the Forex market, this indicator shows fairly accurate and stable trading signals and, most importantly, keeps the trader from leaving the market prematurely, allowing you to take the maximum number of points from each transaction.
However, during a flat, Dots can give a lot of false signals. Therefore, it is better to use it in conjunction with trend-following indicators and at the most volatile time of the day.
As it was written above, Dots uses ordinary moving averages to analyze the price chart. And as we know, this type of technical indicator is considered one of the most effective and accurate. According to professional traders and analysts, traders make much more money using moving averages than using all the other indicators combined. But this does not mean that only Dots can be used when trading, and other Forex indicators should be neglected. On the contrary, we recommend using Dots along with additional filters and trend-following technical indicators.
For example, using the same moving averages, only of an older period, you can determine the global trend and trade only in its direction. That is, it is effective to find places for entering into and out of deals, as well as filter out unprofitable signals.
additional information
Also, Dots can become a unique component for an already assembled complex of a trading system. Thus, you get a successful extension of the strategy due to a more accurate implementation of moving average signals. For example, here's how Dots will look profitable in a strategy that uses moving averages and the MACD indicator. When moving averages cross, we get the primary signal of a trend change, which should be confirmed by the MACD indicator. Further, we wait for the price correction in the opposite direction and enter the market when the trend continues according to the signal of the Dots indicator:
Recently on our website we published an article about a unique scalping indicator Contrast ... In our opinion, by combining Contrast and Dots on one quote chart, you can get the perfect picture for scalping.
Thanks to the unique algorithm of the Forex Contrast indicator, you get an excellent filter that determines the direction of entering the market (histogram squares of the same color - at least three tuffframes). Whereas, with the help of Dots signals, you will receive an excellent signal about the possibility of making deals. As a result, the joint work of these indicators will allow you to filter out more than half of unprofitable trades and significantly increase the profit factor of your trading strategy:
An example of using the Dots and Contrast indicators within one trading strategy
Dots indicator setting
While using this indicator, a trader can change some of the input parameters.
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