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Forex Line is a trading algorithm designed to determine the current market trend, its strength and find the optimal point for opening a trade in its direction. The indicator is presented directly on the price chart as a solid line, which, depending on the received market conditions, is painted in one of two colors, each of which indicates the current trend. Thus, the indicator uses the line color change as its main signal, and with this in mind, a certain position can be opened.
The Forex Line indicator is suitable for use on any time intervals, with any currency pairs.
Input parameters
The Forex Line indicator is not distinguished by the presence of a large number of input parameters, which significantly reduces the difficulties for beginners, especially since the two available are not responsible for its technical work, but only for visualization, that is, its color scheme.
- Level Up - parameter responsible for the color of the line during the uptrend. The default value is Blue.
- Level Down - indicator parameter responsible for the color of the line at the time of the downtrend dominance. The default value is White.
Indicator signals
Using the indicator in trading is not difficult, since the Forex Line works and is used almost the same way with moving averages and other indicators that are similar in scheme. The indicator line changes color depending on the current trend, and thus first determining the current market trend, in its direction a trade can be opened. In the same way, with a new line color change, the current position can be closed.
Signal for Buy trades:
- The indicator line moves up and is colored with the growth value.
- The signal candle should close above the indicator line.
After the line acquires these values, a long position can be opened on the signal candle, due to the presence of an uptrend in the market. Such a position should be closed immediately after the line acquires a new color, since at this moment a trend change occurs, and this will allow opening new trades.
Signal for Sell trades:
- The indicator line, colored with the falling value, moves downwards.
- The signal candle should close below the indicator line.
After these conditions appear on a certain candle, a sell trade can be opened, due to the presence of a downtrend in the market. It should be closed immediately after the indicator line changes its values, namely color or direction. At this moment, it becomes possible to open new positions in the direction with the current movement.
Conclusion
The Forex Line indicator is a very simple, but at the same time quite stable trading algorithm. Despite the good results, the indicator is recommended to be used with additional indicators, advisers and other tools. In addition, it is recommended to use a demo account before using the indicator.
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