The Forex Arcanum is a set of forex indicators that focuses on studying how buyers and sellers interact with the market. There are three different modes of operation for the FX Arcanum trading system, which are conservative, standard, and aggressive. It works well for short-term trading strategies such as scalping as well as longer-term swing trading and day trading. This method works for various timeframes and currency pairs. Here, we’ll talk about the Forex Arcanum and a potential trading strategy for using it.
What is the Forex Arcanum?
FX Arcanum is a novel system that lays greater emphasis on analyzing market and trader behavior. The strategy focuses on dynamic levels that vary in accordance with traders’ interests. It is easy to use, even for beginner forex traders. You do not need to be a professional to utilize it. You may quickly get started with one of three template sets. Forex Arcanum has three different template sets, one for low, medium, and high risks.
The templates are:
- FXaConservative (Safe Mode) – represents the least risk and is the safest option, created for investors who want a more cautious trading style and fewer, more reliable trading signals. Although the risk is modest and the rate of entry is gradual, these signals are more carefully selected.
- FXaStandard (Standard mode) – has the best overall structure. There’s more of a chance of anything going wrong, but it’s still within acceptable parameters, and the entries are far quicker than they were in the earlier model. For regular day trading, this is the best setting.
- FXaAggressive (Aggressive mode) – is the most vigorous template available. It offers more rapid signals at the expense of safety. Only choose this option if you have extensive trading expertise or when you have become familiar with the trading platform.
Due to its simplicity, the indicator only allows for those three settings to be modified, which may be a turnoff for certain traders.
Forex Arcanum Strategy
There are two main components to the system. One is traders’ levels of interest. The horizontal lines on the chart depict the various levels.
- Thick line (1): suggests an interest over the long term. Traders clearly paid attention to the action along that line during the last several days or hours (depending on the TF you choose).
- Thin line (2): implies a present or short-term interest It’s evidence that buyers and sellers have been congregating in that area over the past few minutes or hours (depending on the TF we chose).
The configuration of the lines indicates the predominant trend on a certain currency pair in any timeframe. A bear market occurs when the thin line is below the thick one. Once traders have confirmed their sell entry with further technical indicators and research, they may initiate a trade. If the indication is to buy, things turn around. While investors of any background may utilize this method, This technique is suitable for traders of all skill levels, although it is recommended that you utilize a free MT4 demo account to hone your skills before going live.
- Wait and confirm that the thin line is above the thick line as it indicates a bull market.
- Traders may enter buy positions after confirming their entries with other technical indicators and analysis.
- Set your stop-loss order at the level that has recently provided support, or come up with your own method.
- Wait and confirm that the thin line is under the thick line as it indicates a bear market.
- Traders may enter sell positions after confirming their entries with other technical indicators and analysis.
- Your stop-loss order may be set at the previous swing’s high or according to your management strategy.
Forex Arcanum Pros & Cons
- This technique is suitable for traders of all skill levels.
- It is applicable to any currency pair traded on the foreign exchange market as well as equities, commodities, cryptocurrencies, precious metals, oil, gas, etc.
- Scalping, swing trading, and even day trading might all use this method.
- In a volatile or flat market, it may give out misleading signals, causing traders to lose money.
- The indicator only gives three pre-made templates without room for personalization.
- It ignores economic data and geopolitical events that may have a significant impact on the market.
In conclusion, the Forex Arcanum is a set of technical indicators that places a strong focus on analyzing the actions of market participants and traders. The thick line represents interest rates. The thin line represents a short-term interest rate.
The Forex Arcanum indicator may be added to your trading arsenal. However, it’s important to keep in mind the importance of not being too hopeful. Like any other technical analysis tool, it has its limitations and cannot guarantee reliable signals all the time. Its performance will vary based on market conditions.
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.