Download Now
It is well-known that the forex market spends most time ranging. Sideways movements are one way that the market consolidates before resuming a trend. Consolidation is an excellent method for price breakouts.
However, trading consolidation is not easy. You need to take calculated steps and wait for the right time to make a move.
Consolidation Indicator For MT4 – Free Download.
The indicator mimics Ichimoku Kinko Hyo but uses Fibonacci for channels. It is useful for traders who often use Ichimoku Kinko Hyo to analyze the market via channels.
This indicator can be used to trade any currency pair.
How to Use Channel indicator for Trading
The indicator shows eight lines which form the channels. Each line’s coefficient uses Fibonacci values as its default value. The value can be changed at any time.
The indicator shows channels based upon high and low prices. This helps identify the beginnings of a new pattern.
These eight lines make up four channels.
- The silver channel is the most tightly tuned channel.
- The sky channel is next, and it is contained within the sky blue colors.
- The Zen channel can be identified by the green line.
- The future channel’s high is indicated by the magenta color.
The indicator does not give a buy or sell signal. The signals are received by traders using the Ichimoku Kinko Hyo method. The narrow channel can be used to identify market trends. Wide channels are ideal for price breakouts and provide support and resistance levels.
The chart displays the price movement of Great Britain’s Pound against the US dollar. It is easy to see that the price is trading within Zen Channel.
When the price touches Zen Channel high or low, it is a good time for you to sell. Similarly, Zen Channel low is a great level to buy and to enter a long position.
Conclusion
Consolidation Indicator: This indicator is ideal for trading consolidations. Essentially, the market range represents 70% of all transactions.
You can trade within that range using channel lines as support and resistance zones, or waiting for price to breakout. While it might seem complex, it gets easier over time.
Download Now
The post Consolidation Indicator first appeared on EzyForexTrading - Download Metatrader Indicators and Learn trading!.
from
https://ezyforextrading.com/consolidation-indicator/?utm_source=rss&utm_medium=rss&utm_campaign=consolidation-indicator
No comments:
Post a Comment