Bar Timer Indicator

Most experienced traders understand that the candle’s closing price is usually noteworthy. This informs them about market behavior and possible price direction. Indeed, many seasoned traders believe that trading while the candle is still open is a bad habit. The Bar Timer Indicator is a tool that enables traders to develop the habit of trading only when a candle is about to close or has closed.

What is the Bar Timer Indicator?

The Bar Timer Indicator is a useful tool for scalpers and breakout traders in forex. The indicator shows how much time is left until the current candle closes. While this helps other forex traders understand how much time is left until the close of a candle or bar, scalpers and breakout traders will find it especially useful. This indicator can thus help Forex traders who enter and exit after the close of the candle. The indicator works on all intraday, daily, weekly, and monthly price charts. Furthermore, the indicator is beneficial to both novice and experienced forex traders.

Setting up the Bar Timer Indicator
Setting up the Bar Timer Indicator

Bar Timer Strategy

The indicator displays the bar time in gray and can be configured to display in any corner of the chart via the input settings. Furthermore, forex traders can move the bar timer vertically and horizontally. Price volatility usually increases at the end of a candle or at the beginning of a candle. The same holds true for all timeframes. Scalpers could use the bar timer indicator to determine the best candle time for scalping and then BUY and SELL in accordance with that. Similarly, when using a breakout strategy, forex technical traders could wait for the candle to close before entering or exiting the market. Trendlines, in particular, are prone to false breakouts, so traders may want to only consider a breakout after the current candle closes. Volatility is always likely to rise as the close of a candle approaches. The close of a candle can mean the difference between a true breakout and a false breakout, and thus whether or not a trade is won or lost.

Buy Signal

This could be your checklist for a buy trade:

  • When the timer’s information corresponds with your strategy for a long trade.

Once this event occurs:


  • You could open a buy position based on your strategy after you confirm your entry with bullish candlestick patterns.
  • You could set your stop loss just below the nearest swing low.
  • You could set your take profit at the nearest resistance zone, or you could exit trade based on your strategy’s exit plan.
  • For good risk management, I would only consider trades with a risk to reward ratio of at least 1:2.
Bar Timer Indicator Buy Setup
Bar Timer Indicator Buy Setup

Sell Signal

This could be your checklist for a sell trade:

  • When the timer’s information corresponds with your strategy for a short trade.

Once this event occurs:

  • You could open a sell position based on your strategy after you confirm your entry with bearish candlestick patterns.
  • You could set your stop loss just above the nearest swing high.
  • You could set your take profit at the nearest support zone, or you could exit trade based on your strategy’s exit plan.
  • For good risk management, I would only consider trades with a risk to reward ratio of at least 1:2.
Bar Timer Indicator Sell Setup
Bar Timer Indicator Sell Setup

Bar Timer Pros & Cons

Pros

  • The Bar Timer Indicator is a candlestick timer indicator that displays the amount of time until the current price of a candlestick closes, and it may be useful for new traders who are unsure how long they must wait until the current candlestick closes.
  • This indicator may assist traders in saving more time as they may not have to keep an eye on the price movement all day because the indicator predicts when a new closed candle will appear.

Cons

  • The Bar Timer Indicator do not give signals based on chart analysis, hence the trader ought to have a strategy already.
  • This indicator may require knowledge of price action by the traders in order for them to be able to carry out their technical analysis.

Conclusion

The Bar Timer Indicator is not the type of indicator that provides technical signals that can be used in a trade setup. It does not provide trend or momentum indications, nor does it provide potential reversal signals. It does not provide overbought and oversold signals, nor does it provide a mean reversal signal. It also does not provide traders with support and resistance levels where they can expect reversals. It simply provides a visual indication of how much time remains before the candle will close. Most traders may not find this useful. However, there are also many traders whose strategies work best when traded at or near the close of the candle. This is especially true for strategies which use candlestick patterns. It may also be a good combination for trade signal indicators which has the tendency to repaint. Trading near the close of the candle may decrease the chances that the candlestick pattern would change or the trade signal would repaint.

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