On closer observation, the Forex Prediction MT4 Indicator seems to work based on a three bar reversal pattern. In this pattern, prices make a low, lower low and a higher low for a bullish signal and high, higher high and lower high for a bearish signal.
While this three bar pattern is fairly useful in capturing turning points in the market, they are prone to false signals especially when forming within a trend. Given the drawback in this indicator it is therefore best advised to use the indicator alongside other trading systems or chart patterns. In this article, we outline three ways how you can use the Forex MT4 Prediction indicator.
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The Forex Prediction MT4 Indicator Settings
Chart patterns are relatively reliable but the biggest drawback is trying to wait for confirmation of the bias. The Forex Prediction MT4 Indicator can be a valuable tool in terms of confirming the bias. The first chart below shows a descending wedge/triangle pattern formed on the daily chart. After prices broke out from the descending wedge pattern, the Forex Prediction MT4 Indicator managed to print a buy signal. Although not entirely accurate, when taken in real time along with the breakout from the wedge pattern, the long signal would have resulted in a fairly profitable trade. Of course, there is a certain degree of flexibility as the chart below shows prices dipping back to retest the breakout level, slightly below the original buy signal. Alternatively, the second long signal shown on the chart could also be used as an entry to the chart pattern.
Forex Prediction MT4 Indicator – Chart Patterns
Forex Prediction MT4 Indicator Tops and Bottom
The Forex Prediction MT4 Indicator is ideal when it is formed near the top or bottom of an extended trend. The next chart shows a 50 and 20 period EMA added to the chart with the Forex MT4 Prediction indicator. Here we can see that the most reliable signals are those formed at the top of the trend and at the bottom of the trend. The Forex Prediction MT4 Indicator tends to signal a trend change a bit before the moving averages crossover. Therefore due caution must be applied.
Forex Prediction MT4 Indicator – Tops and Bottoms
The most ideal way is to watch for the Forex Prediction MT4 Indicator to give an opposite signal in a trend and then buy or sell in the direction of the signal when the moving averages line up accordingly.
When applied to the Daily charts the Forex Prediction MT4 Indicator increases in its accuracy. The daily chart below shows the Forex Prediction MT4 Indicator alongside the moving averages applied to the chart. It is easy to see how the buy and sell signals line up fairly accurately and shows the changes in the trends.
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Leave us a comment below to let us know your thoughts on this indicator. If you like this indicator, you might like see other indicators that we have carefully selected that will help you in your trading journey.
Visit our Free MT4 Indicator Download page. And if you can, you really should invest in a proven MT4 Expert Advisor to help you generate some profit on full auto-pilot.
We highly recommend this powerful MT4 Expert Advisor.
We hope you have enjoyed this post as much as we have creating it. Good luck and thank you for your readership.
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Hello,
I’m getting an Alert says ” the fat lady signs (pair) period xxx
what does that mean please?
Hmmm… that’s really strange. We don’t see it.
Kindly provide a screenshot for that…
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