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The DeMarker Custom Histo indicator is a trading algorithm that is based on a modification of the standard forex indicator DeMarker. Its calculations are aimed at determining the presence of a trend in the market, as well as its current direction. The indicator is presented in the lower window of the price chart in the form of a histogram, which, depending on the current trend changes its color. Thus, a certain trade can be opened when the indicator determines the direction of the current trend.
The DeMarker Custom Histo indicator is suitable for use on any timeframe, with any currency pairs.
Input parameters
In the settings of the DeMarker Custom Histo indicator, there are several sections responsible for the general functioning of the indicator. The Input Parameters section is responsible for technical work, the Colors section is responsible for its general visualization, and the Levels section is used to add signal levels to the indicator window.
-DeMarkerPeriod - calculation period of the DeMarker indicator. The default value is 14.
-value1 - is the period of the first indicator value. The default value is 0.55.
-value2 - is the second value of the indicator. The default value is 0.45.
Indicator signals
To open a specific trade using the indicator, it should be taken into account the direction and presence of a trend in the market as a whole. To do this, in turn, it should be taken into account the color of the histogram. If the current market trend is upward, long positions are opened, if the trend is downward, short positions are opened. When the current trend of the trade changes are closed. At the same time, when there is no trend, trades are not opened.
Signal for Buy trades:
- At least three bars of the histogram are colored with the growth value.
When such conditions are received on the signal candle, a buy trade can be opened due to the presence of an uptrend. At the moment of its change or the absence of a trend in the market, namely when opposite conditions are received, the trade should be closed and a new one should be considered.
Signal for Sell trades:
- The histogram bars are colored with the fall value.
A sell trade caused by the presence of a downward trend can be opened immediately upon receipt of such conditions on the signal candle. The trade should be closed if there is no trend in the market. Opening trades should be considered when the trend changes.
Conclusion
The DeMarker Custom Histo indicator is very effective because its calculations are based on the use of an indicator whose accuracy has been proven over time. To gain the necessary trading skills and correct use of the indicator, practice on a demo account is recommended.
