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The LSMA nrp Alert is a trading indicator, the calculations of which are based on the functioning of a moving average with a linear regression method. The indicator is used in trading to identify the direction of the current trend and its strength. Based on this information, the indicator also allows determining the optimal moment to open a position, the direction which is based on the direction of the current trend. The LSMA nrp Alert indicator is displayed directly on the price chart as a moving line, the color of which changes depending on the current trend and its strength in the market.
The LSMA nrp Alert indicator is suitable for use on any timeframe with any currency pairs, as it is equally effective under any conditions.
Input parameters
The LSMA nrp Alert indicator has settings consisting of several sections. Its input parameters consist of only three points, however, a small number of them does not affect the effectiveness of the indicator. The Colors section is used for convenient visualization of the indicator, namely, to change the color scheme and line thickness of the indicator.
- LSMA Period - period of the moving average of the indicator. The default value is 24.
- LSMA Price - the price to which the indicator calculations will be applied. The default value is 0.
- AlertsON - parameter responsible for generating a signal by the indicator when certain market conditions are received. The default value is false.
Indicator signals
The concept of the LSMA nrp Alert indicator is very simple, and at the same time the algorithm itself is quite profitable. Before opening a certain trade, it is only needed to determine the current market trend. If the indicator line moves up and has a color with a growth value, the trend is up, and if the line is colored with a falling value and moving down, the trend is down. And it is with these values of the line that a trade is opened in the direction of the current trend.
Signal for Buy trades:
- The indicator line moves up and has the main color with the growth value.
Upon receipt of such conditions, a long position may be opened on a candle that is above the moving average, due to the presence of a strong uptrend. Such a position should be closed immediately after the indicator line turns into a different color. This will indicate the end or simply a weakening of the current trend, which will allow considering the possibility of opening new trades.
Signal for Sell trades:
- The moving average of the indicator, which has the main color with the value of the fall, moves down.
A sell trade can be opened immediately after such conditions are received on a candle below the indicator line. The trade should be closed after the line color changes. This may indicate a change in the current downtrend or its weakening. At this moment, it can be considered opening new positions.
Conclusion
The LSMA nrp Alert indicator is a very smart and efficient trading algorithm, the use of which helps to be aware of the current market situation and the right moment to open positions. It is also very easy to use, and suitable even for beginners, however, to strengthen own trading skills and to complete ability to use the indicator, preliminary practice on a demo account is recommended.
You may also be interested The LRMA BB trading indicator for MT4
