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The FTNP Trading Indicator for MT5

The FTNP Trading Indicator for MT5

Fisher Transform of Normalized Price or FTNP is a special trading algorithm based on the effective Fisher indicator. Like the main version, FTNP can be used in trading to determine the current trend in the market and, accordingly, to find the optimal moment to open a position in this period. Unlike the standard version, FTNP is represented in the lower window of the price chart not as a histogram, but as two lines, colored in two colors, which intersect each other and are located above or below the signal level. Using the conditions given by the lines, it can be easily determined the current trend and opened trades in its direction.

The FTNP indicator is suitable for trading on any timeframes, using any currency pairs.

Input parameters

Despite the fact that the FTNP indicator settings consist of only two input parameters, the algorithm of its application is very effective and shows excellent results in practice, and the input parameters help to slightly adjust the indicator for correct trading. In the Indicator Colors section, its color scheme and thickness can be changed lines, and in the Levels section, add signal levels.

  • Period - value of the indicator period. The default value is 10.
  • Applied price - type of price to which the indicator's calculations will be applied. Close price by default.

FTNP indicator settings

Indicator signals

The FTNP indicator signals are considered in trading as signals of the current trend. That is, the intersection of lines, their direction, location relative to the signal level are the main indicator signals that make it possible to determine the current trend. Thus, if a certain combination of conditions characterizing a certain trend coincides on a certain candle, a trade can be opened in its direction. If the trend is up, buy trades are opened, and if the trend is down, sell trades.

Signal for Buy trades:

  • Both lines of the indicator are moving up and are located above level 0, while the line with the value of growth is above the line with the value of falling.

Upon receipt of such a combination of conditions characterizing an uptrend in the market, a long position may be opened. It should be closed after the indicator lines cross again. This will indicate a possible trend change, which will allow considering the opening of new positions.

Signal for Sell trades:

  • The indicator lines intersect so that the color line with the fall value is higher than the line with the rise value. Both lines move down and fall below the 0 level.

A short position can be opened immediately after receiving such conditions, since their presence will characterize a downtrend. Such a position should be closed after the next intersection of the indicator lines, which in turn will notify of a change in the current trend and the possibility of opening new trades.

Conclusion

The FTNP indicator is a very effective and easy-to-use algorithm that allows determining the current market trend and trade in its direction. The indicator is great for various strategies that can increase the accuracy of it’s signals, however, the separate use of the indicator is not denied. For better trading results it is recommended to master the use of the indicator, for this, preliminary practice on a demo account is recommended.

You may also be interested The T3 TRIX Log trend trading indicator for MT5

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