Visualize a trading signal on a chart in MetaTrader 4/5
The effectiveness of the entry points and the unrealized profit can be
easily assessed with the visualized chart of provider's deals in
Risks, distribution, news and reviews of trading signals in MetaTrader 4/5
MetaTrader Reports will show you how risky your provider trades and what other subscriber think of that?
Trade statistics, growth, equity & balance graphs of the Trading Signals of MetaTrader 4/5
Trade statistics is a detailed information on a signal, that will help
you to make a wise decision. Growth, equity & balance graphs allow
you to visually estimate a successful provider directly in MetaTrader
Detailed statistics of a trading signal in MetaTrader 4/5
In MetaTrader Platforms the most valuable perameters of trading signals
are placed in a separate block. From this video you will find out where
to find them and what to pay attention to.
How to Trade the Wedge Chart Pattern Like a Pro
The Falling Wedge:
The falling wedge pattern is characterized by a chart pattern which forms when the market makes lower lows and lower highs with a contracting range. When you find this pattern in a downtrend it is considered a reversal pattern as the contraction of the range indicates the downtrend is loosing steam. The Rising Wedge:
The rising wedge pattern is characterized by a chart pattern which forms when the market makes higher highs and higher lows with a contracting range. When you find this pattern in an uptrend it is considered a reversal pattern as the contraction of the range indicates that the uptrend is loosing steam.
Candlesticks - Hammer
Forum on trading, automated trading systems and testing trading
Sergey Golubev, 2019.06.21 08:22
Hammer Candlestick Patterns (based on the
What is a Hammer Candlestick?
Bullish Hammer Candlestick
Inverted Hammer Candlestick
The chart was made on Metatrader 5 using the following indicator from CodeBase:
This lesson describes the ADX with the DI+ and DI- Directional Indicators, and also shows how they are commonly use
Indicators: Average Directional Movement Index (ADX)
The ADX is a momentum indicator used to determine the strength of a price trend; it is derived from the DMI –Directional Movement
Index which has two indicators
+DI- Positive Directional indicator
–DI - Negative Directional Indicator
ADX is calculated by subtracting these two values and applying a smoothing function, example a function of ten to come up with a 10
The ADX is not a directional indicator but a measure of the strength of the trend. The ADX has a scale of Zero -100.
The higher the ADX value the stronger the trend.
ADX value below 20 indicates that the market is not trending but moving in a range.
ADX value above 20 confirms a buy or sell signal and indicates a new trend is emerging.
ADX value above 30 signifies a strong trending market.
When ADX value turns down from above 30, it signifies that the current trend is losing momentum.
ADX indicator combined with DMI- Directional Movement Index
Since the ADX alone is a directionless indicator it is combined with the DMI index to determine the direction of the currency pair.
When the ADX is combined with DMI index a trader can determine the direction of the trend and then use the ADX to determine the momentum
of the forex trend.
Technical Analysis of ADX indicator
A buy signal is generated when the +DI is above –DI, and the ADX is above 20
The Exit signal is generated when the ADX turns down from above 30.
A short signal is generated when the –DI is above +DI, and the ADX is above 20
How to Trade Using RSI
Indicators: Relative Strength Index (RSI)
Relative Strength Index or RSI is the most popular indicator used in Forex trading. It is an oscillator indicator which oscillates
between 0 -100. The RSI is a trend following indicator. It indicates the strength of the trend, values above 50 indicate a bullish
trend while values below 50 indicate bearish Forex trend.
The RSI measures momentum of a currency.
The centerline for the RSI is 50,crossover of the centerline indicate shifts from bullish to bearish and vice versa.
In the example above, when the RSI is below 50, the price kept moving in a downward trend. The price continues to move down as long as
RSI was below 50. When the RSI moved above 50 it showed that the momentum had changed from sell to buy and that the downtrend had
When the RSI moved to above 50 the price started to move upwards and the trend changed from bearish to bullish. The price continued to
move upwards and the RSI remained above 50 afterwards.
From the example above, when the trend was bullish sometimes the RSI would turn downwards but it would not go below 50, this shows that
these temporary moves are just retracements because during all these time the price trend was generally upwards. As long as RSI
does not move to below 50 the trend remains intact. This is the reason the 50 mark is used to demarcate the signal between bullish and
The RSI uses 14 day period as the default RSI period, this is the period recommended by J Welles Wilders when he introduced the RSI.
Other common periods used by forex trader is the 9 and 25 day moving average.
The RSI period used depends on the time frame you are using, if you are using day time frame the RSI 14 will represent 14 days, while if
you use 1 hour the RSI 14 will represent 14 hours. For our example we shall use 14 day moving average, but for your trading you can
substitute the day period with the time frame you are trading.
Center-line: The center-line for RSI is 50. A value above 50 implies that a currency is in a bullish phase as average gains are greater than
average losses. Values below 50 indicate a bearish phase.
RSI values of above 70 are considered to be overbought; traders consider points above the 70 level as market tops and good points
for taking profits.
RSI values of below 30 are considered to be oversold; traders consider points below the 30 level as market bottoms and good
points for taking profits.
These levels should be confirmed by center line crossovers. If these regions give a market top or bottom, this signal should be
confirmed with a center line crossover. This is because these levels are prone to giving whipsaws in the market.
In the example below, when the RSI hit 70, it showed that the currency was overbought, and this could be considered a signal that
the currency could reverse.
The currency then reversed after a short while and started to move downwards, until it got to the oversold levels. This was
considered a market bottom after which the currency started to move upwards again.
When the market is trending strongly upwards or downwards the RSI will stay at these levels for a long time. When this happens
these regions cannot be used market tops and bottoms because the RSI will stay at these levels for an extended period of time.
This is the reason why we say that RSI overbought and oversold regions are prone to whipsaws and it is best to confirm the signals
using center-line crossovers.
Indicator Divergence Trading Setups
Divergence is one of the trade setups used by Forex traders. It involves looking at a chart and one more indicator. For our example we
shall use the RSI indicator.
To spot this setup find two chart points at which price makes a new swing high or a new swing low but the RSI
indicator does not, indicating a divergence between price and momentum.
In the chart below we identify two chart points, point A and point B (swing highs)
Then using RSI indicator we check the highs made by the RSI, these are the highs that are directly below Chart points A and
We then draw one line on the chart and another line on the RSI indicator.
How to spot divergence
In order to spot divergence we look for the following:
Classic Bullish and Bearish Divergence Trading Setups
Classic divergence is used as a possible sign for a trend reversal. Classic divergence is used when looking for an area
where price could reverse and start going in the opposite direction. For this reason classic divergence is used as a
low risk entry method and also as an accurate way of exit out of a trade.
There are two types:
Classic Bullish Divergence
Classic bullish divergence occurs when price is making lower lows (LL), but the oscillator is making higher lows (HL).
Classic bullish divergence warns of a possible change in the trend from down to up. This is because even though the price
went lower the volume of sellers that pushed the price lower was less as illustrated by the RSI indicator. This
indicates underlying weakness of the downward trend.
Classic bearish divergence
Classic bearish divergence occurs when price is making a higher high (HH), but the oscillator is lower high (LH).Classic
bearish divergence warns of a possible change in the trend from up to down. This is because even though the price went
higher the volume of buyers that pushed the price higher was less as illustrated by the RSI indicator. This indicates
underlying weakness of the upward trend.
Hidden Bullish and Bearish Divergence Trading Setups
Hidden divergence is used as a possible sign for a trend continuation. Hidden divergence occurs when price retraces to
retest a previous high or low.
Hidden RSI Bullish Divergence
Forms when price is making a higher low (HL), but the oscillator is showing a lower low (LL).
Hidden bullish divergence occurs when there is a retracement in an uptrend.
This setup confirms that a retracement move is complete. This divergence indicates underlying strength of an
Hidden RSI Bearish Divergence
Forms when price is making a lower high (LH), but the oscillator is showing a higher high (HH).
Hidden bearish divergence occurs when there is a retracement in a downtrend.
This setup confirms that a retracement move is complete. This divergence indicates underlying strength of a
Swing Failure Forex Trading Setup
RSI swing failure can be a very accurate method for trading short term currency moves. It can also be used for trading
long term trends but it is best suited for short term trading especially for those traders that trade reversals.
The RSI failure swing is a confirmation of a pending market reversal. This setups a leading breakout signal, it warn
that a support or resistance level in the market is going to be penetrated. This setup should occur at values above 70
for an upward trend and values below 30 in a downward trend.
RSI Failure Swing in an upward trend
If the RSI hits 79 then pulls back to 72, then rises to 76 and finally drops to below 72 this is considered a failure
swing. Since the 72 level is an RSI support level and it has been penetrated it means that price will and follow and it
will penetrate its support level.
In the example below, the RSI hits 73 then pulls back to 56, this is a support level. The RSI then rises to 68 and then
drops to below 56, thus breaking the support level. The price then follows afterwards breaking it support level. The
RSI swing failure is a leading signal and it is confirmed when price also breaks it support level. Some forex traders
open trades once the swing failure is complete while others wait for price confirmation, either way it is for a trader
to decide what work best for them.
RSI Failure Swing in a downward trend
If the RSI hits 20 then pulls back to 28, then falls to 24 and finally penetrates above 28, this is considered a failure
swing. Since the 28 level is an RSI resistance level and it has been penetrated it means that price will and follow and
it will penetrate its resistance level.
Indicator Chart Patterns and Trend Lines
Traders can plot trend lines on the RSI in the same way as you can plot trend lines on the price charts. RSI trend lines are
plotted the same way trend-lines are plotted on the chart; by joining consecutive highs of the RSI Indicator or
consecutive lows on the RSI Indicator.
RSI Chart Patterns
Chart patterns such as head and shoulders or triangle chart patterns that are not evident on the price chart are often
formed on the RSI indicator.
RSI indicator also often forms chart patterns such as head and shoulders or triangles patterns that may or may not be
visible on the price chart. As shown on the chart below the Reverse Head and Shoulders reversal formation is clearly
shown on the RSI indicator.
RSI Support and Resistance Levels
Sometimes levels of support and resistance are demonstrated better on the RSI than on the price chart.
In an uptrend the support levels should not be broken at any one time, if they are broken then
price will also break the support levels and the upward trend is going to reverse.
In a downtrend the resistance levels should not be broken, if they are broken then price will
also break the resistance levels, and the downward is going to reverse.
In the example above when the third resistance level was broken the downtrend reversed to an upward trend and when the
sixth support was broken the uptrend reversed and broke the upward trend line.
Indicators: Relative Strength Index
Indicator Forex Trading Strategy Summary
The RSI indicator is one of the most widely and commonly used indicators available. RSI indicator is a momentum
oscillator with some trend following characteristics.
RSI is one of the most popular indicators used in technical analysis. RSI is used to generate Forex trading
signals using crossovers.
RSI indicator plots the divergence and convergence of moving averages. The RSI is constructed using moving
average analysis. Moving Average Convergence/Divergence is a trend-following indicator. It indicates the
correlation between two moving averages.
Currency Correlations, Part I
A short video introducing traders to the subject of currency correlations.
Please enable the necessary setting in your browser, otherwise you will not be able to log in.