There are a variety of indicators, and the dark point is only one of them. The Dark Point indicator was also made by the same person, Marco Solito, who made the Dark Venus Expert Advisor. An Italian with over five years’ experience, he is proficient in both MQL 4 and MQL 5.
Dark Point is a trend-following MT4 indicator designed for day and intraday forex and stock market traders. This indicator lets you know when a trend is going up or down, as well as where to put a stop-loss and where you might be able to make a profit. It utilizes the ATR indicator in conjunction with a dark-point moving average to foresee reliable trade opportunities. Read this article to find out how to use the indicator in MT4 to find possible trade setups.
What is the Dark Point Indicator?
Dark Point is a volatility indicator that follows price trends and is based on the ATR. It can be customized so that experts can use it, and it can be set up to send email, push notifications, and sound alerts.
This is not a lagging indicator and has the characteristics of a non-repaint indicator. The buy signal is represented by a point of a different color than the sell signal. In the settings, there are three distinct colors that can be assigned to buy and sell signals. The dashboard will also include statistics on the possible reliability of the signals.
Dark Point Indicator Strategy
The dark point indicator’s trading signals are based on data and a method that takes all time frames into account.
For this purpose, we use the standard deviation of the ATR over 14 periods. On the price chart, the indicator draws green and red dots to represent bullish and bearish trend signs, respectively. Once the indicator verifies a trend’s direction, it computes feasible profit targets and stop-loss levels mechanically.
Potential trade setup objectives are shown as green horizontal lines. In addition, the red horizontal levels indicate safe stop-loss zones. Scalping using SL1 and intraday trading with SL2
The signals generated by the signals can be tracked in real-time by traders. The values for stop-loss and take-profit orders will be provided. Two stop-loss levels (SL 1 and SL 2) and two take-profit levels (TP 1 and TP 2) will be shown on the chart. This information can be used as a guide by traders when making decisions.
When put into practice, this indicator can serve as a helpful trading guide for newbies. The win rate data, the number of signals, and the overall wins are all shown on the dark point indicator’s dashboard, which is a nice perk. These numbers can be used by traders to choose the optimal time frame.
By learning more about how they are used, you might be able to find the best indicator pair and timeframe. Research has shown that this indicator performs well on the H1 timeframe for the three currency pairings (EUR/USD, USD/JPY, and GBP/USD) is was tested with.
Buy Signal
- Open a buy order when the indicator’s green dot appears on the chart.
- Set SL and TP to the respective levels provided by the indicator
Sell Signal
- Open a sell order when the indicator on the chart displays a red dot.
- Adjust SL and TP to the levels provided by the indicator.
Dark Point Indicator Pros & Cons
Pros
- Easy to use
- Customizable setting
- Support all pairs and timeframe
- Adjustable SL and TP
- Not repainting and lagging
Cons
- The win rate does not represent reality
- No particular risk management approach
- Needs much patience while awaiting a fresh signal alert
Conclusion
The Dark Point indication is a custom-built trading tool that isn’t included with Metatrader 4. You can get it from the free Metatrader 4 indicators part of the MQL5 market. Trading signals using stop loss and specific profit targets established by the ATR formula, the indicator size, are provided, which is highly handy for new traders. As is well-known, ATR can be used to define objectives and stop losses by evaluating the average price movement over a certain time period.
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.
