Cycle Identifier Indicator
The Cycle Identifier indicator for MT5 generates filtered price action signals to help traders determine when conditions are appropriate to open buy and sell positions.
Description
The Cycle Identifier MT5 indicator is an excellent choice of custom indicator for both short-term and long-term traders. The MT5 Cycle ID generates filtered price action signals to help traders determine when conditions are appropriate to open buy and sell positions.
How it works
The Cycle Identifier MT5 indicator appears on a separate indicator chart below the main chart where it draws a fluctuating gray line. This gray line is characterized by rising and falling peaks, which are accompanied by green and red bars respectively, to show the market trend and trend momentum.
In the background, the indicator uses a combination of Smooth Moving Averages (SMA), Relative Strength Index (RSI) and Price Action Filter indicators. This allows the indicator to identify a market trend, analyze its strength (momentum), and also filter out false signals.
Short-term traders using the Cycle Identifier indicator should use lower time frames, while long-term traders should use higher time frames.
For example, those who use a scalping strategy should use the indicator on the M1 time frame, and those who engage in intraday trading should use the M5 or M15 time frames. Swing traders can also use the cycle ID and H1, H4 or D1 time frames.
Interpretation of Cycle ID Indicator Signals
The signals generated by the cycle ID indicator are easy to monitor.
If you look at the H1 Metatrader 5 chart above, you will notice that the Cycle Identifier Indicator MT5 appears on the indicator chart below the main chart. You can see the gray line hovering around the 0.00 line.
If you look closely, you will notice that some bars appear whenever there is a peak in the gray line. Lime and dark green bars are displayed when there is a spike below the 0.00 line, and red and maroon bars are displayed when there is a spike above the 0.00 line. You should also understand that the thickness of these bars varies; There are times when the stripes are thin and other times when they are thick and very noticeable.
These red and maroon bars signal a bearish trend, while the lime and dark green bars signal a bearish trend. However, the trend moves signaled by the maroon and dark green bars are too small to justify placing trades. Thick red and lime stripes signal significant trending movements that require trades to be placed.
- A thick red line signals a strong bearish trend, when a trader should open a sell trade.
- A thick strip of lime signals a bullish trend, when a trader should enter a buy trade.
If you have an open buy position, it is always recommended to close it whenever a red or burgundy bar appears. Likewise, if you have an open sell position, it is always recommended to close it whenever a light green or dark green bar appears.
Conclusion
Using the Cycle Identifier MT5 indicator for trading allows traders to determine when the correct conditions are met to place buy and sell orders.
The indicator is easy to use and can be used by both beginners and professionals in Forex trading.
1 2 3 4 5