If you have been searching around for the best forex indicator then your search officially ends here! Stop wasting your time trying the same old recycled forex indicators that tell you the exact same thing just in a different way. Read on to know exactly what forex indicator you are missing and how you can now have the holy grail of forex indicator to use in your MetaTrader 4 trading platform.
How you are taught to trade forex
Dont get me wrong the above chart is an extreme example but how on earth can people trade with so many conflicting indicators! Mt4 already includes all of the main technical analysis forex indicators that you need which to be honest should be a simple trend indicator such as the moving average and a simple oscillator to help you to identify overbought and oversold prices. In addition to the built in mt4 forex indicators you can use price action analysis in the form of candlestick patterns and support/resistance to help identify ideal entry and exit points. Then there is fundamental analysis that can affect the forex market such as major news releases, just look at the impact Brexit had for example! You also have NFP (Non-Farm Payrolls) day every first Friday of the month which causes some erratic market movements. It is important to be aware of news releases so you can use a forex news calendar to keep track of the latest news. So we can combine these 3 elements and we have the following:
- Technical analysis using built in mt4 forex indicators
- Price action analysis using candlestick patterns & support/resistance
- Fundamental analysis in the form of news releases
Now we can combine these 3 primary elements for analysing forex currency pairs to help us identify the best entry and exit opportunities. An example would be using a moving average indicator to filter the trend and a CCI indicator to look for a pullback in line with the trend. In a buy trade scenario we would want price above the moving average and CCI extremely oversold so less than -100. This would be our technical analysis. We could then look for bullish engulfing candlestick pattern to confirm the entry and finally ensure that there are no recent or pending major news releases. Now this is all well and good provided you use consistent money management with a good risk to reward ratio of 1:2, you could achieve a win rate of less than 50% and still make profit! However, you want to get a higher win rate right? You want deadly accurate trades each and every time right? You want to stop trading with a blindfold on right? Well the key thing missing from all of this analysis is… The Forex Market Sentiment!
The Forex Market Sentiment
The key missing ingredient here and the “secret” to forex trading if you like that you are not taught by the gurus or in the books is the Forex Market Sentiment. This shows you how many traders are long on a currency pair (buyers) and how many traders are short on a currency pair (sellers). With this information you can trade AGAINST the crowd in what is known as contrarian trading and take advantage of the mistakes 95% of traders make. Of course, statistically it is well know 95% of traders fail so logically if you trade AGAINST the crowd (sentiment) you will greatly increase your chances of winning every trade. Why do you think trading terminals such as MetaTrader 4 do not include forex market sentiment indicators or tools? Because they use this very information to trade against traders themselves! The big players can get access to this information and use big orders to clean out a cluster of buyers/sellers hence why you often see big spikes on your charts. Just another example of the crowd being wiped out, so you want to trade against the crowd and with the big dogs!
How do I know the Forex Market Sentiment?
Luckily for you the best forex indicator is the forex market sentiment and you start using it right away when you download it now. It will display the forex market sentiment on your charts in a very easy to use way. You simply look at the currency pairs that it displays which have extreme buyers or extreme sellers and then you trade AGAINST the sentiment. So, if say 70% of traders on the EURUSD or buying you can be pretty confident that the market is either moving against them (going down) or it is about to. You then ride this wave against the sentiment like clockwork. Once you see it happening for yourself you will see exactly what I mean and be surprised how often the sentiment is completely wrong! You will see them holding onto losing trades as the market continues to go against them. Without using the forex market sentiment indicator you do not have this information so you can end up being another sheep following the heard. And you know what they say, “if you follow the heard, you step in s***”.
How does the Forex Market Sentiment Indicator work?
The Forex Market Sentiment indicator collects data from hundreds of thousands of real live account forex traders on all brokers from across the world and displays on your chart how many buying positions and how many are selling positions there are on a given currency pair. It will also display the amount of volume of buyers and sellers as well as the average entry positions. You will find that when there is an extreme amount of positions and volume in one direction then the market is going to be moving against them. After all, it has to or else the market would not exist! Use this information as the best forex indicator in your trading arsenal. Load it up on your charts today and you will see that all the time you have not been trading with this forex indicator, you have been trading with a blind fold on.
I could go on all day and night about how fantastic the forex market sentiment indicator is but for more information you can read my forex market sentiment review or if you are serious about being in the 5% of successful traders and want to start making winning trades NOW then go and get your copy from the forex market sentiment website.