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The Solar Winds indicator is a trend trading algorithm that is used to determine information about the current market, namely the direction and strength of the current trend, which in turn allows opening trades during this period. The Solar Winds indicator is displayed in the lower window of the price chart as a histogram, which, when determining the current trend, is painted in a certain color and is located below or above its signal level. These indicators of Solar Winds are considered the main ones in determining the direction of the current market movement and trading in this period directly.
The Solar Winds indicator is suitable for use on any timeframe, with any currency pair.
Input parameters
The Solar Winds indicator settings consist of several sections, so the Input Parameters section is used to change the parameters of the technical work, while the Colors section is used to change the visualization, namely the color scheme and the thickness of the values. The Levels section is used to add signal levels to the indicator window.
- period of averaging - value of the indicator calculation period. The default value is 10.
Indicator signals
The algorithm for using the indicator is identical with respect to using similar histogram indicators. That is, to open certain trades, the direction and strength of the current trend is determined first. To do this, the color and direction of the histogram columns should be taken into account. During the strong upward trend, long positions can be considered to be opened, while short positions are opened during a strong downtrend. When the trend weakens or changes direction, trades are closed.
Signal for Buy trades:
- The histogram of the indicator is located above level 0 and has a color with a growth value. In this case, the new column of the histogram is higher than the previous one.
Upon receipt of such conditions, a buy trade can be opened on a bullish candle, since the current conditions characterize a strong uptrend. Such a trade should be closed upon receipt of the opposite conditions, namely, when the color of the histogram bars changes. At this moment, a weakening of the current trend is determined, which will characterize its subsequent change. At this point, it should be considered opening new trades.
Signal for Sell trades:
- Histogram bars are color-coded with fall value and form below level 0 and below each other with each new bar.
A short position, determined by the presence of a strong downtrend, can be opened when a full combination of such conditions is received on a bearish candle. If the current trend weakens or changes, the trade should be closed. That is, when the histogram color changes, one should consider opening new trades.
Conclusion
The Solar Winds indicator is a very effective trading algorithm that allows knowing information about the current market, namely the direction and strength of the current trend. To improve the accuracy of signals, it is recommended to use Solar Winds as part of trading strategies with additional filters, advisers and indicators. Before trading on real deposit is recommended to use a demo account.
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