MT4’s Forex Market Indicator uses a sophisticated method to calculate sellers’ and buyers’ power in the market. The indicator helps traders identify bullish or bearish conditions and place the most profitable buy or sell trades. Once the basic information about the trend has been determined using the indicator, traders are able to use the output of the indicator to create trading systems.
The indicator is ideal for both experienced and new forex traders. Novice forex traders can spot price trends within seconds. However, more experienced traders can create a wide range of technical trading systems by taking signals using the information provided by the indicator. It can be placed on any intra-day chart or on a weekly chart.
MT4 Trading Setup for FXR Forex Sentiment Indicator
The chart below illustrates how the FXR FX Sentiment Indicator works in the MT4 system. The indicator shows the results in terms of sell-side strength and buy-side strength on the chart. FXR indicator shows the percentage of buy-side strength in blue and the percentage of sell-side strength in red.
A rise in buyer’s strength above 50% is a sign that a bullish direction exists in the market. Forex traders can use a stop loss below the previous swing low to buy. It is vital that traders in the forex market hold their positions until the bullish trend is maintained. As long as the value is above 50%, they should exit the position when the strength weakens. In addition, traders can chart profit-taking on the basis of a balanced risk to reward ratio.
If the sell-side strength is greater than 50%, this is a sign that the market trend is bearish. Therefore, traders can put in a sell after this signal and stop trading above the previous high of the swing.
This FXR forex sentiment indicator for MT4 provides both buyer and seller strength. Traders can use this sentiment to determine the overall trend. For the most effective results, signals that occur near resistance and support points, channels and pivot points receive more attention from forex traders.
Its FXR forex sentiment indicator, is very helpful. It also enhances the analytical skills of traders who trade Forex.