Silence Indicator
Silence Indicator For MT4 plots market volatility and rate of change of forex market instruments. Works with other indicators for technical analysis
Description
The Silence indicator for MT4 plots the market volatility and rate of change. The combinations of these two values provide a better understanding of a potential bullish or bearish price move. This enables the forex trader to apply volatility and rate of change in confluence with other technical indicators to identify a best entry point.
The indicator works well in intraday price chart as well as the daily, weekly and monthly price charts. Moreover, new forex traders may find it difficult to incorporate the idea of volatility and price changes. On the other hand, advanced forex traders can use them easily. Additionally, the indicator is suitable for scalpers and short term traders.
Silence Indicator For MT4 Trade Setup
The indicator plots the red line shows the volatility and the blue indicate rate of change. Many traders use the crossover of the lines as an entry signal; however it may not be the best trading strategy. The main purpose of the indicator is to identify an entry point where the volatility increases along with a rate of change.
If the price trends to reverse upwards and both lines tend to rise either as a crossover or parallel, it indicates a potential buy signal. On the other hand, if the price trends to reverse downwards with both lines raising it indicates a potential sell signal.
As mentioned earlier, this indicator does not provide a simple buy or sell signal. So, traders should use the entry signals in confirmation with price action or other technical indicators.
Conclusion
In summary, the Silence indicator for MT4 helps forex traders to see the market in a different perspective for technical analysis and trading strategies.