The blocks “Currency ImpulseMeter” and “Currency TrendMeter” are located in separate windows and represent multicurrency oscillators. By monitoring and analyzing dynamics of currency lines in these windows, a user can independently determine the strongest impulse and trend movements, use them in trade, and also accompany open trading positions.
This block consists of 8 currency lines, which are colored in the corresponding color. Analysis of the dynamics of their movement makes it possible to obtain a large number of profitable signals for trading.
Block “Currency Trend Meter” displays the relative strength of currencies in the market basket. The growth or decrease of the currency line relative to other lines means the growth of the price of this currency in the market basket.
Thus, by tracking the dynamics of a particular currency line in the market basket and its intersection with other lines, you will be able to determine the beginning and end of the trend on specific currency pairs.
Example – crossing of GBP and JPY lines (GBP / JPY currency pair)
After almost every intersection on the chart (which demonstrates our Forex impulse indicator) is observed for a long period of growth or falling quotations, which is sufficient for fixing the profit:
On the block “Currency Trend Meter” you can independently apply overbought/oversold levels. Touching the currency lines of these levels means a significant weakening or strengthening of a particular currency in the market basket.
The specified signal can be used in a pair with a signal about the intersection of currency lines with each other in approximately the following algorithm:
This approach allows us to partially exclude from trading false intersections between lines. That is, to make deals only when after crossing the trend lines on the currency pair really began to accelerate
Example-filtered trade after false crossing of lines:
This technical Forex impulse indicator allows you to determine the moment of occurrence in the market basket of short-term spikes in demand and supply for a particular currency. That is, the moment when a certain currency is actively buying or selling against other market currencies.
Each currency on the impulse indicator mt4 scale has its own line painted in a certain color. If the Forex impulse indicator line of the currency started to grow a specified currency started to use active demand. That is, we can make a deal to buy it against other market currencies.
Accordingly, if the currency Forex impulse indicator line is actively falling – we can sell this currency against other market currencies.
You can close such a deal using the Take Profit level or when the lines of the respective currencies cross back:
Also, you can close such a deal at the reverse intersection of the lines of the corresponding currencies on the indicator “Currency Trend Meter»:
In some cases, this closure may be delayed. However, there are often price impulses, which are the starting points for the emergence of long-term market trends. In this case, you can catch a long trend and a good profit:
As you understand, the trades opened with the help of this impulse trading forex indicator should be closed at the reverse intersection of the forex impulse indicator lines. Thus, instead of a fixed Stop Loss order, it is recommended to use the algorithm of closing trades at the reverse intersection of currency forex impulse indicator lines. That is, if you made a deal to buy and before reaching the Take Profit level the forex impulse and correction lines crossed in the opposite direction, then such a deal must be closed.
Using this option works much better than the classic Stop Loss orders. In reality, the reverse crossing of the lines occurs at the moment when the deals is either in a positive area or with a small minus.
To set the Take Profit level I use the PRICE ACTION FIBO CHANNEL indicator (the buyer receives this indicator as a gift!!).
This is a channel indicator, which places a channel on the price chart, the width of which depends on the range of the price movement of the currency pair for a certain period.
Thus, with the help of this forex impulse indicator, We effectively determine the potential of further price movement in points.
In order to determine the Take Profit level for a particular currency pair, set the indicator PRICE ACTION FIBO CHANNEL on charts. After that, determine the distance between the two extreme lines of the price channel:
Don’t underestimate the importance of this indicator. If you decide to use a fixed TP size for all currency pairs, this will be very wrong approach. For one currency pair the Take Profit, for example, with a size of 1000 pips may not enough, but for other is too much. Thus, for different currency pairs, we must use different Take Profit levels, which depend on the level of average volatility. For example, for GBPCAD I use Take Profit 1100 pips, and for EURGBP 300 pips:
We wish you a good profit and excellent results of using the indicator PRICE ACTION IMPULSE TREND!!
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