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For convenient, fast and profitable trading on forex platforms, a large number of indicators that determine the trend have been created. Thanks to such indicators, the current market trend can be quickly determined, as well as the optimal points for entering trades. One of these indicators is CHO Color N Bars Extremum. CHO Color N Bars Extremum is a new and more effective version of the standard CHO indicator.
The indicator is located in the lower window of the price chart and is a solid line that changes color when the current trend is detected. Also, when a strong trend is detected, arrows are formed on certain bars, thanks to which trades have become much easier. The indicator can be called universal, since it works equally accurately on any timeframes, with any currency pairs.
Input parameters
The CHO Color N Bars Extremum indicator, unlike its previous version, has more advanced parameters that are responsible not only for its visualization, but also for its general functioning.
CHO
- -CHO:Fast Period - value of the period of the fast curve of the indicator line. The default value is 3.
- -CHO:Slow Period - the period of the slow curve included in the indicator. The default value is 10.
- -CHO:Smoothing type - the type of smoothing of curved lines of the indicator. The default value is Exponential.
- -CHO:Type of volume - type of volume that will be used in indicator calculations. The default value is Tick volume.
- -CHO:Trend N Bars - the number of bars to which the trend reversal detection calculation will be applied. The default value is 3.
Arrow
- -CHO Extremum Up:symbol code from the Windings font-code of the symbol of the arrow, which is responsible for the growth of the market. The default value is 242.
- -CHO Extremum Up: vertical shift of arrows in pixels - vertical deviation of the growth arrow from the price chart in pixels. The default value is 10.
- -CHO Extremum Down: symbol code from the Windings font-code, changing which will change the symbol responsible for the market fall. The default value is 241.
- -CHO Extremum Down: vertical shift of arrows in pixels - vertical distance in pixels of the falling arrow from the price chart. The default value is 10.
Also in the indicator settings there are parameters for changing the color scheme and width of the indicator values displayed on the price chart.
Indicator signals
It is extremely simple to make any trades using the CHO Color N Bars Extremum indicator, since at any opportunity to open positions, it sends a signal that is formed under certain conditions. The indicator line consists of three colors denoting an uptrend, downtrend or flat.When when an uptrend is determined, buy trades are made, when a downtrend is determined, sell trades are made, and the presence of a flat characterizes their absence. A signal is formed at the place where the arrow appears.
Signal for Buy trades:
- -The indicator line turned into a color indicating an uptrend.
- - An arrow pointing upwards has formed on a certain bar.
When these conditions are combined, a long position can be opened. The trade should be closed when the line color changes.
Signal for Sell trades:
- -The indicator curve has a color that defines a downtrend.
- - An arrow has formed on the current candle, indicating a fall, that is, directed down.
If the above conditions match, a short position can be opened. The trade should be closed when the color of the indicator curve changes.
Conclusion
The CHO Color N Bars Extremum indicator is a very accurate and effective trend indicator whose signals can be identified very quickly. Despite this, the indicator is still recommended to be used in combination with other indicators. Also, for profitable trading, experience is needed, which can be gained through the use of demo account before trading on a real deposit.
