Solar Wind Indicator
Solar Wind Indicator For MT4 is a trend-following indicator fro forex traders to identify bullish and bearish market conditions and buy or sell accordingly.
Description
The solar wind indicator for MT4 is trend following indicator that provides buy and sell forex trading signals using a histogram. So, traders can quickly identify the trend direction and trend strength and decide to enter or exit the markets accordingly.
The indicator is simple to use and interpret, so it’s best suitable for new and advanced forex traders. However, advanced forex traders can use the indicator for additional confirmation of other trading strategies or incorporate automated trading strategies.
Solar Wind Indicator For MT4 Trading Signals
The above GBPUSD H1 candlestick price chart shows the solar wind indicator for MT4 in action. The indicator plots the histogram as a separate window. Green histogram bars show bullish market condition while red histogram bars indicate a bearish market.
Forex traders should enter the market with a buy trade once the histogram bar changes from red to green, with a stop loss below the previous swing high. Similarly, if the histogram changes from green to red, traders should place a sell position with a stop loss above the previous swing high.
The best strategy to book profits is to exit the market at an opposite trading signal. However, traders could look to exit if the trade is running with a good risk reward ratio. Furthermore, the indicator does not allow for much of user customization, the only input is the period for indicator calculation.
Technical traders should note that the indicator repaints. So, it’s in the best interest of the trader to use additional indicators or price action for confirmation.
Conclusion
The solar wind indicator for MT4 is effective in displaying the long term forex trends. Lower time frame price charts show signals frequently and may result in overtrading or confusion. So, it is best suitable for higher time frame price charts.