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The MBFX Timing indicator is a developed algorithm that is used for trend trading. It performs its calculations, after which it signals the presence or absence of the current trend and its strength, after determining which, a trade can be opened in its direction, while this algorithm can be suitable for determining whether the market is in the oversold or overbought zone. The MBFX Timing indicator is presented in the lower window of the price chart as a solid line, which, depending on the current market conditions, is painted in a certain color and is located above or below its signal levels. And thus, when a certain combination of line conditions is received, the current trend is determined and a position is opened in its direction. However, if there is no trend, positions are not opened at all.
The MBFX Timing indicator works equally effectively on any timeframes, with any currency pairs, so any values can be chosen.
Input parameters
The MBFX Timing indicator settings consist of only two input parameters, but this is quite enough to change its technical operation. The remaining sections of the indicator, such as Colors, are responsible for its color scheme, and Levels, for adding additional signal levels to the indicator window.
- Len - value of the length of the indicator line. The default value is 7.
- Filter - filtering period for indicator calculations. The default value is 0.0.
Indicator signals
Signals of the MBFX Timing indicator are generated at the moment when a certain movement appears on the market or, on the contrary, its absence is observed. These values are determined by the values of the indicator line. That is, the current market movement is determined by the color, direction and location of the indicator line relative to the signal levels. If conditions characterizing an uptrend are formed on a certain candle, a buy trade is opened, if the trend is down, a sell trade. However, if there is no trend in the market, then in order to avoid a loss, trades are not opened at all.
Signal for Buy trades:
- The indicator line, colored with the growth value, moves up, crossing its level 50.
Upon receipt of such a combination of conditions, a buy trade can be opened on a certain candle, due to the presence of an upward movement in the market. Such a trade should be closed after the indicator line acquires opposite values, that is, it changes its color and direction. At this moment, it becomes possible to open new trades in the direction of the new market trend.
Signal for Sell trades:
- The indicator line is colored with the value of the fall, and moving down, it is located below the level of 50.
A sell trade can be opened on a signal candle immediately after receiving such conditions. It should be closed after receiving the opposite conditions from the indicator, namely when the color and direction of the lines change, after which the current trend is expected to change, which will allow considering the opening of new positions.
Conclusion
The MBFX Timing indicator is a very effective trading algorithm, specially designed for trend trading. The indicator is also perfect for use in various strategies, where the accuracy of its signals will increase several times. Also, the accuracy of its signals is also affected by the filtering of signals, which is available in its input parameters. The higher its value, the fewer signals, but the more accurate they are. And, accordingly, there are more of them, with small values of this parameter, however, the less accurate they are. In order to get the necessary trading skills, preliminary practice on a demo account is recommended.
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