Trade Levels And Rates MT5
The indicator shows a smooth price channel zone benefits and risks of transactions and price dynamics in relation to the interests of market participants. This will help you to open positions at competitive prices and to "catch" the trend, avoiding inefficient and risky transactions. Judicious use of the product, along with the standard indicators allows you to filter false signals and build profitable strategies that take into account the behavior of other traders.
The composition of the indicator
The indicator of prices Extrema builds converging smooth envelope line. At upper and lower envelope constitute tapering price channel. Bulls are trying to expand the channel up, and bears - down. Price, reaching the channel, pushes the envelope by an amount depending on the respective side of the force. Force sides in the indicator lines are represented tempo.
Price channel between the envelopes divided down on Efficiency Zone 4:
- effective sales. Price increases, quickly reaching new extremes are close to a turn and the beginning of the downward movement. Downtrends begin immediately, and in this area is only valid SELL of resistance levels.
- Wildcats sales. Price makes less volatile fluctuations along
guide, and you can trust indicators. only permitted
transaction SELL, confirmed strong signal - risky purchases. Similarly zone # 2, but the transaction - BUY.
- effective shopping. Then the price drops, quickly reaching new lows, is expected to start an uptrend. Allowed only BUY deal of support levels.
3 guides tempo - slow (closest to the envelope), average and fast (more vertical). They also share the channel segments.
- fast bear - rapidly decreasing (bearish) guide - shows the behavior of the bears, who conclude deals fast at the best prices and keep the position with the maximum benefit. As long as price is below this line, this group is not out of the market, while maintaining the position.
- slow bear - slowly decreasing - characterizes the behavior of the bears that are opening transaction, hold the position until the risks do not outweigh the benefits obtained.
- medium bear - Average decreasing - shows "obschemedvezhy" pace
- Increasing the tempo lines show similar behavior bulls
marker Reverse It acts as a SAR.
Using indicator
In Zone 1:
- unacceptable transaction for the purchase, except in the case of breakdown the top of the envelope, sign illuminated Reverse (Reverse switch), and provided that the price of "fast bull" above the line, that is, when the bulls are very strong
- sell signals are crossing lines price fast bull, medium bull, that is, exit from the market of the groups and the weakening of the bulls
- oscillator signals of short and largely fail under delayed. They should not be taken into account
In zone 2:
- sell signal - the opening of the first bar below the fast bull, confirmed by other signal
If the price is above the fast bull, not allowed the transaction to sell unless Reverse switch or release from a strong line of resistance. short-term indicators signals are ignored.
Symmetrically to zones 3, 4 and the line fast bear.
generalized rules
- Assess the strength of bulls and bears along the lines of pace.
- Trade from the zone boundaries.
- Do not believe the indicators, when the price close to the envelope.
- Use the guide as a slow stop-loss order.
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