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My Favorite FREE Indicators

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Steven Theobald
852
Steven Theobald 2013.04.01 20:08 

GOOD DAY.  All traders have gone through dozens if not hundreds of indicators trying to find a few that seem to best fit their trading style or actually help their EA programming.  I have been manually trading for 7 years now and wanted to share a few FREE indicators that I found that have actually helped me make some $.   I have attached them to this post.  Please post some of your own and briefly explain how you use them.  This is only for FREE indicators (MT4 or MT5).

1.  Trend BOLT.  (Attached)   This FREE indicator numerically adds  MA's, MACD, and Stoch across all MT4 time frames.  I used it for more than 12 months profitably and I still refer to it often.  You can change the settings for each sub-indicator, and you can choose which time frames to use.  The MAGIC of Trendbolt is that it weights higher time frames more heavily, so you can always have a good feel for what the "Big Boys" are doing. 

Personally, I trade across multiple instruments, and this helps me to know instantly by color and number, which pair is the strongest or weakest.  I am not using this now in my manual trading, but it helped me tremendously in my thinking about how the market moves, and I strongly recommend it.   Caveat:  Just remember that trends don't go on forever, and the one that is the weakest might become the strongest on the reverse.  I have no relationship with the programmer.

TrendboltTrendbolt2


2.  Daily ATR showing 100% and 80% levels.   (Attached)     The 80% daily ATR level is a great place to start thinking about a reversal.  100% for sure.  Referring to the picture, the EUR/USD will typically start to reverse up in this range.  But never just jump in front of a "long" freight train barreling up a hill or try to catch a "short" falling knife because you "just know" that it will reverse at point X. 

Daily ATR


3.  ATR stops used in REVERSE.  (Attached)    Most traders know all about using the Average True Range over X periods for their stops.  But after watching the market for thousands of hours, I discovered that this indicator can be uncanny in its ability to signal ENTRIES.   Why?  When do traders exit?  When price breaks the ATR stop.  So that is when you enter the other direction.  Very simple.   However, I think it is imperative to keep your eye on the higher time frames with this one.  Adjust to your risk tolerances, and watch it for awhile first so it will reveal its secrets to you.  In the case below, the 1M is indicating a short, but the 5M is still long, so I would probably be FLAT.   How to make the entry?  Once a Support or Resistance level is broken, often there is a small pullback, and that  is when you should enter in the direction of the break.  And of course, you can use the very same indicator to place your stops like everyone else!

ATR Stops


And finally, here is a picture of all three indicators working together.  In this case, the EUR/USD appears to be stalling near the high of the day, but Trendbolt says its not done going up yet.  So I will would wait for a red number on Trendbolt or see a solid break of the 15 min EUR/USD ATR stops.   

All Three


Again, please share your favorite FREE indicators and tell us how you use them, or pepper me with questions on my post.


Alain Verleyen
Moderator
31085
Alain Verleyen 2013.04.01 22:48  
TalonTrader:

GOOD DAY.  All traders have gone through dozens if not hundreds of indicators trying to find a few that seem to best fit their trading style or actually help their EA programming.  I have been manually trading for 7 years now and wanted to share a few FREE indicators that I found that have actually helped me make some $.   I have attached them to this post.  Please post some of your own and briefly explain how you use them.  This is only for FREE indicators (MT4 or MT5).

1.  Trend BOLT.  (Attached)   This FREE indicator numerically adds  MA's, MACD, and Stoch across all MT4 time frames.  I used it for more than 12 months profitably and I still refer to it often.  You can change the settings for each sub-indicator, and you can choose which time frames to use.  The MAGIC of Trendbolt is that it weights higher time frames more heavily, so you can always have a good feel for what the "Big Boys" are doing. 

Personally, I trade across multiple instruments, and this helps me to know instantly by color and number, which pair is the strongest or weakest.  I am not using this now in my manual trading, but it helped me tremendously in my thinking about how the market moves, and I strongly recommend it.   Caveat:  Just remember that trends don't go on forever, and the one that is the weakest might become the strongest on the reverse.  I have no relationship with the programmer.



2.  Daily ATR showing 100% and 80% levels.   (Attached)     The 80% daily ATR level is a great place to start thinking about a reversal.  100% for sure.  Referring to the picture, the EUR/USD will typically start to reverse up in this range.  But never just jump in front of a "long" freight train barreling up a hill or try to catch a "short" falling knife because you "just know" that it will reverse at point X. 



3.  ATR stops used in REVERSE.  (Attached)    Most traders know all about using the Average True Range over X periods for their stops.  But after watching the market for thousands of hours, I discovered that this indicator can be uncanny in its ability to signal ENTRIES.   Why?  When do traders exit?  When price breaks the ATR stop.  So that is when you enter the other direction.  Very simple.   However, I think it is imperative to keep your eye on the higher time frames with this one.  Adjust to your risk tolerances, and watch it for awhile first so it will reveal its secrets to you.  In the case below, the 1M is indicating a short, but the 5M is still long, so I would probably be FLAT.   How to make the entry?  Once a Support or Resistance level is broken, often there is a small pullback, and that  is when you should enter in the direction of the break.  And of course, you can use the very same indicator to place your stops like everyone else!



And finally, here is a picture of all three indicators working together.  In this case, the EUR/USD appears to be stalling near the high of the day, but Trendbolt says its not done going up yet.  So I will would wait for a red number on Trendbolt or see a solid break of the 15 min EUR/USD ATR stops.   


Again, please share your favorite FREE indicators and tell us how you use them, or pepper me with questions on my post.


Very interesting topic. Thanks for sharing.
Steven Theobald
852
Steven Theobald 2013.04.01 23:07  
angevoyageur:
Very interesting topic. Thanks for sharing.

You are welcome.  I have had several wonderful mentors, and they were all generous with their time and their knowledge.  I know how maddening trading can be, and I want to help ease some of the pain!  

Of course we all have to travel the same journey when trading manually, but with the right help, some on MQL5 might be able to travel via skateboard instead of by foot.  I truly believe there is no perfect indicator.  However, with two or three interpretive indicators and then some outside help, lots of practice, and disciplined determination, I think many more people could be profitable in this business.

Steven Theobald
852
Steven Theobald 2013.04.02 14:28  

GBP down 

So here we are this morning with the GBP looking like it wants to tank.  But wait!  What a bout the ATR?  Price is below the pink line, and the range is 100.7 or about 19 pips higher than the 82 pip average range (I think it is set for 14 days).  What do you do???   Well, we are looking for "high-probability" trades. Is going short here a high-probability trade?  NO IT IS NOT.  Yes, it MAY completely tank at this point!  You could be right.  But you could just as easily be wrong.  Just wait on this pair, and go look for another trade.  THAT is why I like to trade multiple pairs.  As one author penned, "There is always a bull market somewhere!" 

Niclas Ingvaldsen
472
Niclas Ingvaldsen 2013.04.02 18:15  

Great read as always!

Do you want to share how you setup trendbolt, or do you use the standard settings like showed in the picture you attached? 

 

I also read somewehere about a simple rule following trendbolt trends:

When it shows 50% up/or downtrend, follow the trend (buy or sell), TP when it reaches 70-80% (according to your risk/reward style). I have no idea about SL settings, you will have to experiment with that one. Not sure if following it blindly will create profits, but it might be another indicator to watch while you do your usual moves!

Steven Theobald
852
Steven Theobald 2013.04.02 18:44  
Niclas:

Great read as always!  Do you want to share how you setup trendbolt, or do you use the standard settings like showed in the picture you attached?    I also read somewehere about a simple rule following trendbolt trends:  When it shows 50% up/or downtrend, follow the trend (buy or sell), TP when it reaches 70-80% (according to your risk/reward style). I have no idea about SL settings, you will have to experiment with that one. Not sure if following it blindly will create profits, but it might be another indicator to watch while you do your usual moves!

Thanks.    I  leave the settings alone except I usually turn off H4 and D1 because I like to take fast small trades of about 7 pips each.  Trendbolt is more responsive this way because the higher time frames are weighted more.  I want a speedboat to follow, not a battleship.   I tried faster settings on the MACD like I use in my own trading, but it didn't work any better.  Again, the point for me is to compare instruments, so the ruler really doesn't matter, as long as I use the same one on each.   Swing Traders should probably leave all timeframes up.

I used to put Trendbolt on the Dow and Nasdaq as well (since my MT4 broker offered them), and that would help me stay on the right side of the market (see  Risk ON vs Risk OFF).

The rules you mention seem like really good ones.  But I never used this great tool in isolation.  I used S & R  and MAs ("dynamic" S & R) for entries and exits.  I would not use this blindly unless you are swing trading and have huge stops.

I mentioned before that the weakest one may not stay the weakest one for long.  This is so true.  Nevertheless, it is OFTEN true for the beginning for new trends, and THAT is the main way I used it:  "I see now that the market is rolling over.  Which currency pair out of the six I am watching seems to be the weakest?"  Then I would enter the two weakest pairs but not stick around too long!

How to Read Risk ’OFF’ or Risk ’ON’ Sentiment
How to Read Risk ’OFF’ or Risk ’ON’ Sentiment
  • Jeremy Wagner
  • www.dailyfx.com
The market sentiment seems to flip flop back and forth on a daily basis between a “Risk On” and a “Risk Off”. Reading Risk Sentiment is as simple as following the direction of the US Stock Market. is through the risk appetite of investors. The benefit of understanding the mood of the market is it allows you to align your trades in the...
Steven Theobald
852
Steven Theobald 2013.11.09 06:07  

How did I forget this???

My FAVORITE free indicator of all time is simply the 50 period simple moving average.    (50 SMA)

1.  TREND.  I have found the 50 SMA it to be the most reliable directional trend determination tool.

2.  DYNAMIC RESISTANCE.  I have found the 50 SMA to be uncanny in its ability to repel price on pullbacks.  In other words, I will often use it for exits or even entries.  I consider it as valid as any horizontal Support or Resistance line.

3.  I have found it extremely helpful when I am not using Trendbolt to quickly see the SMA angle and position of price in relation to the 50 sma to compare three instruments for trade setups.

4.  The corollary to #1 is this--the 50 sma is a valuable RANGE determination tool.   If the 50 SMA is flat, I will NOT trade at all (unless I am only scalping in a range).

acekmv
5
acekmv 2013.11.13 17:32  
TalonTrader:

How did I forget this???

My FAVORITE free indicator of all time is simply the 50 period simple moving average.    (50 SMA)

1.  TREND.  I have found the 50 SMA it to be the most reliable directional trend determination tool.

2.  DYNAMIC RESISTANCE.  I have found the 50 SMA to be uncanny in its ability to repel price on pullbacks.  In other words, I will often use it for exits or even entries.  I consider it as valid as any horizontal Support or Resistance line.

3.  I have found it extremely helpful when I am not using Trendbolt to quickly see the SMA angle and position of price in relation to the 50 sma to compare three instruments for trade setups.

4.  The corollary to #1 is this--the 50 sma is a valuable RANGE determination tool.   If the 50 SMA is flat, I will NOT trade at all (unless I am only scalping in a range).

 

 

Try 55 period... it is fibo. number 

Steven Theobald
852
Steven Theobald 2013.11.13 17:57  
acekmv:

 

 

Try 55 period... it is fibo. number 

Thanks for the suggestion.   My original mentor swore by the 60 EMA.  I can see that the 50 sma, the 55 sma and the 60 EMA are all very close together.
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