Ratio Market Indicator
MT4The Ratio market is an excellent trading indicator for helping you determine the market trend. It provides straightforward trading signals from accurate values.
Description
The ratio market indicator is probably one of the most useful indicators that provide straightforward trading signals. It highlights the decision area where you should open buy and sell positions. The indicator also provides stop loss levels, and two take profits levels.
In addition, the Ratio Market technical trading tool estimates the correction depth and draws the pivot zones. It displays the key levels of the structures for several timeframes. Moreover, the indicator uses ATR and ADX volatility indicators on a fixed timeframe and the spread.
If the indicator identifies increasing volatility, it gives you a risk warning. It can also allow you to change the elements’ color and unnecessary markup. The indicator works particularly well on a 4hour time frame.
How To Use the Ratio Market Indicator to Trade
The indicator shows you the medium-term trend. You only need to read the signal and open trades accordingly. To be precise, check the four-hour trend provided by the indicator and contrast it with the 1-hour trend. Ideally, you will want both trends to face one direction. This would give you the confidence to enter the trades in that direction.
- Buy when the indicator shows that the trend is an uptrend.
- Sell when the indicator shows the trend is a downtrend.
The indicator shows you a suitable trade entry level, stop loss level, and two take profit levels. Simply fill in the trades on your platform.
Trading Example
Trading with the ratio market is quite straightforward. You only need to identify the provided trend direction.
The picture shows the price movement for the USD/CHF over a four-hour time frame. The general trend is downwards according to the 1-hour and 4-hour timeframe signals. You should therefore look to sell at the 0.9849 decision area. The indicator gives you two take-profit levels at 0.9164, 614 points (61 pips), and 0.9609 (1693 points) – meaning that you will make 169 pips profits. The indicator draws a stop loss at 28 pips. And true to the indicator signals, the price hits the first and second profit targets. It is one of the indicators that provide you with accurate trading signals.
Conclusion
The ratio market is one of the most incredible trading tools. It shows the general market trend in a four-hour and 1-hour time frame. The whole idea is to buy during an uptrend and sell during a downtrend. In fact, it identifies the decision area, a suitable point to open your trade, set the suitable stop loss level, and two suitable take profit levels. You only need to check the values and open the position.
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