Watch the testing video here:
Turn Area Forex Indicator
The Turn Area Forex Indicator is a combination of Relative Strength (RSI) and Exponential Moving Average (EMA). The signals are represented in a form of the histogram bars that can reach overbought/oversold levels (20/-20 respectively). Due to the nature of its signals, that forex indicator can be considered as a reversal indicator.
The Turn Area Forex Indicator fits all kinds of timeframes and currency pairs. It is displayed in a separate window placed just below the main trading chart. The default settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences.
How does it work? How to apply in trading?
Trading Rules Explanation
As we mentioned earlier, the Turn Area Forex Indicator uses a 12-day EMA along with a 21-period of RSI for determining both the market trend and its overbought or oversold conditions. Positive values mean the trend is bullish, and conversely, negative values reflect the bearish trend. Detailed trading instructions are provided below.
Follow these steps for a long trade:
- Turn Area Indicator bars drops below oversold level (-20 level) and then reverse above 0 level
- Price swings higher from recent low swing
- Buy trade is triggered after the above conditions are met
- Set stop loss a few pips below the last swing low of the market
- Take profit or exit trade whenever the Turn Area indicator bars stars to drop from its overbought level
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