There are heaps of trend indicators out there. Some perform better, while others lag in telling the trend’s direction. One of the more uncommon indicators for detecting trends is the Fiji trend indicator. It can present exact entry and exit points based on its calculations, but does require additional confirmation from other analysis in order to get the most out of it. That being said, let’s see what Fiji indicator is all about and how you can trade forex with it.
What is the Fiji Trend Indicator?
The Fiji trend indicator uses mathematical calculations to determine the direction of the trend. It combines the calculations of Moving Averages and ATR (Average True Range) and forms arrow lines below the chart.
Along with arrow lines, Fiji plots green and red arrows to mark the trend. The red arrow illustrates a downtrend, while the green arrow mentions an uptrend.
The indicator is super simple to use and can cater to all levels of traders.
How to trade with the Fiji Indicator?
Trading with the Fiji indicator is super easy. Once the indicator plots a green or red arrow, you can consider a trade. You can look at the price for confirmation. For instance, you can enter the trade if the Fiji indicator plots a green arrow (buy signal) and the price is in a strong momentum.
Sometimes Fiji plots arrows during the consolidation phase. So, it’s better not to take your position and wait for clear momentum.
You can also use Fiji as a reversal indicator. For example, if the market is in a strong downtrend, and Fiji plots a green arrow, it’s a sign of a price reversal. So, you can enter long or exit positions.
The key point is that using the Fiji Trend on longer timeframes is better. Although the indicator works on every timeframe, I find that on a shorter timeframe it can produce a lot of false signals. This is even the case with higher chart timeframes. Therefore, I would always confirm any Fiji indicator signal with additional technical analysis and price action patterns.
If you are a forex scalper, you could look at the trend on higher timeframes and then return to the lower timeframe and trade with the Fiji Trend Indicator. In general, I find that conducting multiple timeframe analysis using a combination of indicators can help to reduce false signals.
- The Fiji Trend indicator should plot the green arrow.
- Wait for the price to continue upwards, and then you could enter the trade.
- You could place a stop-loss near the recent low.
- You could set take-profit at a recent high or exit the trade when the red arrow appears.
- The Fiji Trend indicator should plot the red arrow.
- Wait for the price to continue downwards, and then you could enter the trade.
- You could place a stop-loss near the recent high.
- You could set take-profit at the recent low or exit the trade when the green arrow appears.
The Fiji Trend indicator is a simple trend-following indicator that plots green and red arrows. By navigating these arrows, you can take your positions. You can use Fiji as a trend-reversal and a trend-continuation indicator. Sometimes the indicator can produce false signals, so if you want to confirm the signals, you can add additional indicators like Bollinger Bands, RSI, MACD, and others with the Fiji Trend Indicator.
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