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The Force Histo indicator is a trading algorithm designed for trend trading. The indicator's calculations are aimed at determining the direction of the current trend, namely its direction and strength, which are the main values when using the indicator. The Force Histo indicator is presented in the lower window of the price chart as histograms with a signal line that changes its color and direction relative to the signal level depending on the current market conditions. Taking into account the values of the histogram, the current trend is determined, as well as a trade that can be opened during this period.
The Force Histo indicator is suitable for trading on any timeframe using any currency pair.
Input parameters
The Force Histo indicator settings consist of several sections. Thus, the Input Parameters section is responsible for its technical work, the Colors section for its general visualization, including the color scheme, and to add signal levels to the indicator window, the Levels section is used.
- Force Period - indicator calculation period. The default value is 5.
- Force Method - type of indicator calculation smoothing. Default value is 0.
- Force Price - the type of price to which the indicator calculations are applied. The default value is 0.
Indicator signals
The Force Histo indicator is easy to use not only due to its visualization but also due to the fact that its application algorithm is similar to the use of similar histogram indicators with a similar principle of operation. To open a certain trade using the indicator, one should take into account the current trend, namely its direction and strength. For this, in turn, the color and direction of its histogram columns are taken into account. If the current market trend is upward, long positions are opened, if the trend is downward, short positions are opened. At the moment of weakening or trend change, in both cases, trades are closed.
Signal for Buy trades:
- Histogram columns have a color with a value of growth and together they are directed above level 0. At the same time, its new column is formed above the previous one.
Upon receipt of such conditions, a buy trade can be opened on a signal candle, due to the presence of an uptrend in the current market. Close the trade and consider opening a new one should be when the current trend weakens, and subsequently changes. That is, when receiving reverse conditions from the indicator.
Signal for Sell trades:
- The histogram and the line of the indicator are below level 0, and its new bars fall below the previous ones and have a color with a fall value.
A sell trade due to the presence of a downtrend can be opened immediately upon receipt of such conditions on a signal candle. If the current trend weakens, the trade should be closed. Opening a new trade should be considered when the trend changes. Both conditions are accompanied by reverse signals from the indicator.
Conclusion
The Force Histo indicator is a very effective trading algorithm, despite its ease of use. To improve the accuracy of signals, it is recommended to use it with additional indicators, advisers and tools. Practice on a demo account is recommended before using it on a real deposit.
