Candles Ratio V1 Indicator
Candles Ratio V1 Indicator For MT4 plots an oscillator based on the ratio of bullish and bearish candles on current forex chart to identify a best entry point
Description
The candles ratio V1 indicator for MT4 plots an oscillator as per the ratio between the bullish and bearish candles within a given period. An increase or decrease of the oscillator values provides an insight to the forex trader about the dominant market players. So, the oscillator values and levels including the support and resistance help the forex trader in technical analysis or to formulate trading strategies.
The indicator is a simple oscillator and is easy for new and advanced forex traders to understand. Moreover, the indicator works on all intraday price charts and the higher time frame charts. The best strategy is to use the indicator in confluence with other technical indicators.
Candles Ratio V1 Indicator For MT4 Trade Setup
The indicator plots a green oscillator line on a separate indicator window. If the oscillator values increase it shows that the buyers are currently dominant in the market. However, a falling oscillator value indicates that the sellers are currently strong in the market. Moreover, traders can draw support and resistance on the oscillator to identify potential price reversals.
The primary trading strategy is to identify the current bullish or bearish condition using the ratio of market participants. Traders should consider entering the market with a buy trade if the oscillator reverses upwards. A stop loss below the previous swing low should be effective in protecting this position.
Similarly, if the oscillator line starts to reverse and move downwards it indicates the presence of increased number of bears in the market. So, traders should open sell position with a stop loss above the previous swing high. Traders should look for any reversal in the oscillator to book profits.
Conclusion
In summary, the Candles ratio indicator for MT4 is an oscillator that helps forex trader to identify the dominance of bulls or bears in the market.