MSP Indicator v. 2.0
The MSP Indicator generates profitable forex trading signals consistently. It offers potential buy–sell signals based on market volatility. The Best day trading tool
Description
The MSP Indicator is a volatility-based day trading tool developed for MetaTrader 4 platforms. It uses Average True Range (ATR) in the background for assessing the market volatility. The indicator spots potential switching moments in between bullish and bearish momentums. It plots arrow signals whenever it detects a possible trend-reversal condition.
Besides, this indicator displays texts along with arrows mentioning whether it is a buy or sell signal. So, as a trader you don’t need to anticipate a trading signal manually, the MSP tool does the job for you. You’re only required to follow the arrow or text signals and activate buy/sell orders accordingly.
Trading with the MSP indicator doesn’t require any previous trading experience. Anyone with basic price-action knowledge can apply it for forex day trading in live markets.
How to use MSP Indicator signals for day trading in MT4 platforms
The MSP indicator applies a 14-period ATR for assessing the average price move. It uses the highs and lows of previous price candles for calculating the average. It plots a buy signal when the current price turns greater than the average value. Conversely, it plots to sell signals when the price drops below the average.
There are two types of trading methods you may choose while following the MSP signals:
- Aggressive Entry: Directly open an order right after the indicator plots a buy/sell signal. For instance, it plots an arrow pointing upwards and shows “BUY” below the arrow means it’s time to go for a long entry. For exits, you can wait until MSP plots an opposite arrow to your trading direction. Alternatively, it is ideal to exit orders with at least a 2R profit.
- Conservative Entry: A conservative style doesn’t encourage going for direct trade entries. In this case, we’ll consider the MSP signal as a pre-indication of possible trend-reversals. So, after the indicator plots a trade signal, we’ll wait for further price-action to make the trading decision more confluent.
In the above image, the MSP plotted a sell signal at the top of the chart. Next, the price started to consolidate for a while and then plotted a bearish breakout. So a sell signal with a bearish breakout offers a better confirmation for a short entry.
Conclusion
Despite being a day trading indicator, the MSP doesn’t produce frequent buy/sell signals. Instead, it stresses more on the signal quality. The simple demonstrations and higher accuracy of its trading signal offer plenty of advantages for beginner-level scalpers. Besides, expert professionals may apply it as a signal filter on their existing trading system for improving the winning ratio.