The MOLFAR INDICATOR is something new in metatrader4, something interesting for determining the level of potential price bounce.
Let's get to know it better.
Using breakout lines, channels, our favorite Fibonacci and a couple more complicated formulas - we got an indicator for MT4, which... draws a lot of segments on the chart.
This indicator is quite complex, with a lot of variables, buffers and formulas. Therefore, if you have a weak computer, think twice whether you need to buy it.
Now let's look at this drawing again. We see that one or more segments are formed above the candle.
Note arrow #1. The rebound occurred from the upper segment.
Pay attention to arrow #2. It is drawn near the bold segment (in fact, it is a cluster of regular segments near the price)
Pay attention to arrow 3. This is the upper segment above its bar. To the right of it is the bold segment, which further increases the probability of a bounce.
Rule No. 2: An expected rebound is possible from the extreme segment, subject to Rule No. 1.
It is also necessary to take into account the bold segments above the bar, since movements are also possible from them.
Take profit and stop loss rules.
The question is very philosophical and rather depends on the trader's psychology, his strategy and many other factors.
It is necessary to take into account the golden rule of the Molfar indicator - it shows a possible price bounce from the level, but not a change of trend and price reversal. After the rebound - the price can naturally go again and the absence of stop-loss can lead to undesirable consequences. Take profit, according to my observations, should be taken into account from the previous maximum peak or trough, as in the picture below.
Settings are very simple
History - from which bar the segments begin to be counted. For the tester, set History to 10.
SUNSET - Settings for segments that are located above the bar and from which a rebound down to a short position is expected.
SUNRISE - Settings for segments that are located under the bar and from which the price can bounce up to a long position.
In all other respects, the Molfar indicator is a wild stallion on the forex field. If you can tame it skillfully, it will be able to help you adequately.
