BlackEdge FX is a software-based trading system developed by a private Forex trader who has been trading, teaching, and mentoring since 2012. A seasoned Forex trader, Josh Taylor, created BlackEdge FX, a software and subscription service. This post will cover the Blackedge Fx System and a potential trading strategy for this indicator.
What is the Blackedge Fx System?
The Blackedge FX System is a tool for technical analysis that looks at the financial markets to find likely levels of support and resistance. This indicator is suitable for currency pair scalping, day trading, and swing trading. You can use this indicator alone or with other indicators, such as price action and market structure analysis.
Two major components of the Blackedge Fx System are employed to generate trading signals. The following are:
- Renko Bars – Renko Bar is a unique kind of bar on the primary chart that varies significantly from standard bars. When identifying renko bars, time is not taken into account. They only develop when market prices move within a specified range. For instance, a bar is generated if the price increases or decreases by ten pips, but you may adjust this range. After installing the indicators, you may use either pure renko charts or basic charts with this trading method.
- Scalp Cycle – The Scalp cycle is shown as a histogram on a separate indicator window, with silver and red arrows forming at the top of the histogram. These arrows represent the market’s momentum. When you see silver arrows, you should look for opportunities to buy, and when you see red arrows, you should look for opportunities to sell.
Blackedge Fx Strategy
This Blackedge FX System strategy is simple to implement. In a bullish situation, the trend of the currency pair you are observing should be upward. When the Renko bars make white bars and the scalp cycles make silver arrows on the activity chart, traders can place a buy trade. Place a stop-loss order a few pips underneath the most recent swing low.
In a bearish situation, on the other hand, the currency pair you are watching should be in a downtrend. When the Renko bars create red bars, and the scalp cycles produce red arrows on the chart, traders may enter the market. Place a stop-loss order a few pips above the most recent swing high.
You may take profit when the opposite trading signal appears on the chart, or you can use your strategy to get out of a trade.
Using the Blackedge Fx System, you may trade with all possible forex currency pairings and timeframes. You can change the parameters of this indicator to suit your own needs. Still, the default values are more than enough to give you trading signals and trading opportunities. You may use this indicator during the London and New York sessions for the best results.
- Ensure that the currency pair you are analysing is in an uptrend.
- The market should be in a support region.
- Wait for the Renko bars to develop white bars and the scalp cycles to form silver arrows.
- You may place a buy order if the above conditions are met.
- Place your stop loss below the most recent support level.
- Take profit when the Scalp cycle indicator displays red arrows or follows your money management strategy.
- Ensure that the currency pair you are observing is falling.
- The market should be around a zone of resistance.
- Wait for the Renko bars and scalp cycles to become red bars and arrows on the chart.
- You may place a sell order if the above conditions are met.
- Place your stop loss level above the latest level of resistance.
- Take profit when the Scalp cycle indicator displays silver arrows or follows your money management strategy.
Blackedge Fx System Pros & Cons
- It also functions as a trading signal filter.
- Blackedge Fx System signals are not repainted and do not vanish.
- The System offers a comprehensive Forex history and trade library.
- It may provide false signals in a ranging market, causing traders to incur losses.
- It is a lagging indicator, which means it may confirm a trend after it has already begun.
In conclusion, the Blackedge Fx System is a technical indicator that works as an input signal source and shows trend channels for any timeframe or currency pair. The Blackedge FX System may be added to your trading collection, but remember to have realistic expectations. Like any other technical analysis tool, we can only sometimes give correct signals 100% of the time. Thus, this forex indicator sometimes generates erroneous indications. Its performance will be very variable based on market circumstances.
Self-confessed Forex Geek spending my days researching and testing everything forex related. I have many years of experience in the forex industry having reviewed thousands of forex robots, brokers, strategies, courses and more. I share my knowledge with you for free to help you learn more about the crazy world of forex trading! Read more about me.