The ForexMT4Systems Cycle indicator , which will be discussed today, is designed for trading on small timeframes: M1, M5 and M15. However, this does not mean that it cannot be used on other TFs. It is possible, but it must be borne in mind that in this case there will be much less signals. There are no restrictions on currency pairs. The indicator has many parameters in the settings. They may need to be optimized. In MT4, it is installed in the usual way. The following picture will appear on the chart
Main parameters in ForexMT4Systems Cycle settings
I’ll start with the most important variables.
Price-Action-Filter filters signals, excluding erroneous ones. As you can see from the parameter name, this is done using Price-Action. The value of this variable determines the number of signals and their quality.
Lenght is a period. It is set based on the timeframe use major-Cycle-Strength is a parameter responsible for the relative strength of the main cycle. The display of arrows depends on its value.
The next parameter is Use-Cycle-Filter. It allows you to activate signal filtering based on the relative strength of the main cycle.
Use-Filter-SMA-or-RSI is another filter. It works based on SMA and RSI readings.
Filter-Strength-SMA and Filter-Strength-RSI are parameters that allow you to set the SMA and RSI periods.
Well, everything else that you will find in the settings concerns alerts about signals and the design of icons and indicator lines.
ForexMT4Systems Cycle Indicator Signals
The indicator, in accordance with the algorithm incorporated in it, will carry out the necessary calculations and give recommendations on entering the market. Its signals can be of two types: strong and weak. On the chart, the prices are displayed as arrows, and the latter as circles.
Of course, it is better to open trades on strong signals.
The order of the trader’s work is as follows: if a circle appears on the chart, and then an arrow, then at the opening of the next candle, you can enter the market.
The direction of the deal will depend on the color of the icons. Traditionally, red is selling and blue is buying.
Based on this indicator, you can create a trading system. To do this, you need to think over the placement of stop losses and decide under what conditions you can take profit.
I want to warn you that you cannot immediately start trading on the signals of this indicator on a real account. Be sure to check its work on a demo account.
Those who wish to use this technical analysis tool in their trading can download the indicator file from the link below.