It is a signal indicator based on the volatility of the asset. It monitors volume and volatility levels and market movement through the ATR (Average True Range) indicator.
In this way you can easily configure your stop loss and take profit (if used in your trades), noting support and resistance in the chart.
A candle clock helps you get in at the right moment, evaluating the momentum of the moment.
Operates on any asset, currency, timeframe, Forex or BMF / Bovespa.
It does not require additional calibration, just indicate the risk calculation using take profit and stop loss correlation. If desired, you can change the parameters of the indicators.
- Rate takeprofit x stoploss: default is 0.7, is 30% risk / gain. If you setup to 1.0 the take profit will be the same as stop loss, or 50%.
- WPR period: default is 12.
- WPR upper: default is -38. It is the highest value over a number (n) of previous periods. Values indicated between 0 and 20% indicate that the market is over-bought.
- WPR lower: default is -62. It is the lowest value in relation to a number (n) of previous periods. Indicative values between 80 and 100% indicate that the market is oversold.
- In the upper and lower parameters, discard the minus sign in the calculation, but include it in the parameter as above.
- ATR period: default is 120.
- Buy when you receive the buy signal (up arrow). Take Profit is marked by a target by means of the risk calculation. However, if you wish, to keep the trade by the resistance indicator.
- Sell when receiving the sell signal (down arrow). Take Profit is marked by a target, also by risk calculation. Likewise, if you wish, to keep the trade by the support indicator.
It can greatly assist beginners who are not comfortable with the indicators and graphs.
- In times of instability, such as news, the indicator may be impacted, as one might expect. In case of news or for reverse position protection, remember that stop loss is not normally used.
- In times of low volume, it can occur that the lack of this can not reach the indicated target. The use of breakeven and trailing may be advantageous in some strategies.
- For Scalp, use smaller timeframes.
- In normal market situations, wait for the next candle after the signal, to confirm the movement.
- You can use the Bollinger Bands as a reference point, either for partial realization or confirm the Take Profit space, or another indicator of your preference.
Remember: no indicator gives you 100% winnings. Always use common sense.