Today I want to tell you about a special group of analysis tools called “foreign indicators”. They differ favorably from other indicators, as they signal the further direction of price movement. This is extremely important for the timely opening of a trade order and making a profit.
This type of indicator can be found both in MT4 trading terminal and on forex resources that offer their own development.
Open indicators in MT4
This can be attributed to them: Stochastic, CCI, RSI. Essentially, they are oscillators that form their readings on the basis of price velocity and time period data. These oscillators show special zones that can be of two kinds: overbought and oversold. If the indicator line is in one of these zones, and then begins to exit it, it indicates a probable change in the direction of price movement.
Other leading indicators
In the middle of the traders’ development, I would highlight the Xprofuter indicator. The algorithm of its work is based on the search of situations in the history, similar to the current picture on the price chart. The expectation is that history is inherently cyclical in nature. This means that if the chart shows a situation that has already been observed before, the further development of events may be similar. The Xprofuter indicator offers a forecast of the trading instrument price movement for a few candlesticks forward.
The second indicator of this type that I want to offer you is William36histogram. It also forms areas of overbought and oversold, but unlike other analysis tools, it displays them as a histogram. At the moment when the bar chart reaches its maximum or minimum (+50 or -50), you can start to consider selling or buying. William36histogram signals the upcoming reversal of the price a little earlier than it begins to happen in the market.
In conclusion, I would like to warn you that the leading indicators that I have told you about cannot be the only analysis tool for making trade decisions. To increase the accuracy of the input it is necessary to use filters.
By the link below you can download the archive containing the indicator files Xprofuter and William36histogram.indikatory15.08.2018