The challenge is to combine indicators in a smart way. This means that indicators should deliver different type of information about the market and confirm each other rather than duplicate signals. Forex traders call it “signal confirmation”, forex trading reversal indicator is in reality could be the same type of data, and should be called “duplication”, rather than “confirmation”.
To control the situation traders need to choose only useful primary tools in order to avoid information overflow. Especially if you are a novice trader, we’d like to suggest you two most popular and widely used indicators to start planning your trades with. The third place goes to MACD. However, it’s not a secret that to many traders Elliott waves theory is one the most difficult studies whether it comes to understanding, using it or following someone’s forecast. Choose “Save as” or “Save link as” to download the indicator. MACD historam staying above zero line — market is bullish, below — bearish.
MACD histogram flipping over zero line — confirmation of a strength of a current trend. MACD histogram diverges from price on the chart — signal of an upcoming reversal. Forex brokers guide – brokers comparison and more! Forex Bonus – latest 2015 bonus offers! Camarilla Equation is known among forex traders as Camarilla pivot points. Camarilla pivots are used for intra-day trading, it is a tool for Forex scalpers and short term traders alike.
Taking yesterday’s High, Low, Open and Close Camarilla indicator calculates 10 levels: 5 “L” low levels and 5 “H” high level. Most valuable and most often traded Camarilla pivot levels are L3, L4 and H3, H4. Current Camarilla indicator also has built in regular Pivot points and Fibonacci levels. The charts to be used for trading with Camarilla equation – 15 min, 10 min, 5 min and 1 minute. Watch for the market coming towards L3 or H3 level – these are the levels of entry – L3 Long and H3 Short. L3 and H3 are Camarilla’s support and resistance levels accordingly.
At support or resistance level market is expected o stop and reverse either temporarily or permanently. L3 or H3 Camarilla pivot, it is not known yet whether there will be a stop and reverse or not. L3 and H3 Camarilla pivot levels hold price in while it moves sideways. Taking short profits is very important at this stage. This trading style will be carried out till a true trend starts – it will start with a breakout.
Forex breakout trading with Camarilla equation involves L4 and H4 pivot levels. You may notice a margin between H3 and H4 or L3 and L4 level – that’s a no man’s land. When trading Camarilla breakouts, Forex traders expect the market to continue running in the direction of the breakout. When L4 level is broken downwards – SEll. When H4 is broker upwards – BUY. Fianlly, if to examine Camarilla levels with Pivot Point levels in Forex, in our opinion, regular Pivot points have higher value, therefore, we see combining Camarilla trading with Forex Pivot points as a winning combination. Just use the default, because from the code it appears that GMTshift has to do rather with calculating Camarilla pivots for Monday by using Friday’s data rather than Sunday.
The settings are not related to time zones. GMT Offset is in fact the most important variable to set. I find EST to be the most respected by price and set GMT offset so that the day is Midnite to Midnite EST. Otherwise, you may as well just draw some lines on your monitor and “pretend” they’re pivots – you’ll be just as successful as you would be using the random lines and numbers generated by the above type of indicators that can’t be time adjusted. I try to download the file but cant seems to get it right? Both EST and GMT hours are very popular. Depends on your time zone preferences.