In this post I will be reviewing the Forex Spectrum indicator for the MetaTrader 4 (MT4) trading platform. This is a manual forex trading indicator that can automatically generate buy and sell signals on your chosen currency pairs and chart timeframes.
The Forex Spectrum indicator is another forex trading system from the Karl Dittmann whose previous forex software I have reviewed including Fibo Quantum, Super Profit Scalper, Pips Wizard Pro, Forex Enigma, Forex Monarch, Forex Resolut, Exynox Scalper System, Onyx Scalper, Alfa Scalper, DNA Scalper, X Trend Premium, FX Atom Pro, X Scalper, Set Forget Pattern Profit, Rapid Trend Gainer, Infinity Scalper, Forex Equilibrium, Triumph Scalper, Forex Starlight and FX Meta Scalper.
In this Forex Spectrum Review, I will be taking a look at what type of forex strategy it uses, along with the key features. Hopefully this will help you to decide if it is something that you would like to include in your day trading routine. With that being said, let’s get right to it!
Forex Spectrum Strategy
The Forex Spectrum indicator has a built-in trading algorithm that will scan your charts for trading signals according to the underlying technical analysis that it implements. When there is a buy or sell signal, it is clearly displayed on your chart in a visually easy to understand way. However, there will be many false signals, so you will need to take the initiative in order to get the most out of this forex indicator.
The Forex Spectrum is very versatile as you can use it for scalping, day trading holding positions for the long-term. Whilst you can use the software on any currency pair or chart timeframe, the developer states that the system is designed for the 30-minute to daily charts.
It can also be used on other financial instruments including stocks, indices, commodities, cryptos and more. I would personally be looking to trade the major currency pairs such as the EUR/USD and GBP/USD. This is because they can often have some of the highest trading volumes which can give ample opportunity to catch some good market moves.
If you don’t want to sit and chart watch all day, you can always set the Forex Spectrum software to send you an alert via platform pop-up, SMS or email. This can enable you to simultaneously monitor many charts whilst going about your daily routine. When there is a signal, you can decide if you would like to take the position or wait for the next to come along.
You can take each and every signal if you wish, but I would much prefer to filter all of the Forex Spectrum signals with my own technical, fundamental and sentiment market analysis. I think that it is important to understand exactly how and why each trade is taken, rather than blindly enter them all. This can help you to learn more about the forex markets and become a better forex trader.
In my opinion the Forex Spectrum strategy requires users to have some experience, simply because I think it is best to set your own stop loss and take profit targets based on your own money management strategy. Yes, it does include optional stop loss and take profit targets whilst you can exit the market on an opposite trading signal. However, the default targets may not be suitable for everyone. Therefore, you should use levels that you feel comfortable with an you can even skip the trades that do not provide suitable money management should you wish.
FX Spectrum Assistant
The FX Spectrum Assistant will help you to minimize your time by speeding up the overall trading process. When the FX Spectrum indicator detects a trading opportunity, the FX Spectrum Assistant will detect optional Take Profit and Stop Loss levels individually generated by the Forex Spectrum. As mentioned earlier, you are also free to set your own levels which is what I would do personally as I think every trader is different when it comes to risk preferences.
All you need is to choose the option you prefer more by clicking one of the buttons, and the FX Spectrum Assistant can control all the process and exit the trade for you (with all the required settings) once one of the Take Profit levels or Trailing Stop is reached.
One of the most powerful features of FX Spectrum Assistant is the Trailing Stop option. To activate it, simply click the “ON” button under Trailing Stop and then choose “Enter with Trailing Stop”. When you decide to open the trade as the Assistant offers you, this will command FX Spectrum Assistant to open the trade and immediately set the Trailing Stop.
Once a trade with a Trailing Stop is open, it will always follow the current price at a fixed distance. It will automatically move closer to the current price every time it goes further away from your Entry Level. Thus, this can increase the pips of each trade with every price movement.
And when the price starts going against you, this trade will automatically close as soon as the price reaches the Trailing Stop level. This feature is extremely useful as it can enable you to maximise each move. However, the hard bit is getting into a good move in the first place as I find the FX Spectrum indicator does not always pick winners.
The Trailing Stop also enables traders to exit the market in scenarios where the price doesn’t have enough momentum to reach any of the Take Profit levels.
In addition, you can choose the trading style that suits you: Conservative, Medium, Aggressive or Custom that allows you to change the settings manually. These Trading Styles determine the frequency and range of TP levels.
You can find more details and examples in the Forex Spectrum User Guide.
Forex Spectrum Features
- User-friendly interface
- MetaTrader 4 platform
- Clear buy and sell trading signals
- Optional take profit and stop loss levels
- M30 through to daily timeframes
- Any currency pair or other instrument
- FX Spectrum Assistant
- Instructions, full support and free updates
Forex Spectrum Summary
Overall, I feel there is certainly some potential with the Forex Spectrum strategy. It can generate easy to understand buy and sell signals on your charts, along with optional take profit and stop loss levels. This may be an attractive proposition for those of you who do not have the time or knowledge to manually analyse the markets for trading signals, but I do think it requires significant user-input.
The Forex Spectrum signals can be hit and miss as they are. I would want to confirm them all with my own detailed markets analysis and you should also have a good money management plan in place. I think results can differ significantly as well depending on the trader’s discipline. I would only consider using it on a demo account to begin with until I am consistently seeing results.
I actually do not feel that the Forex Spectrum indicator it is any different from a forex trading strategy that you could build using the MT4 default indicators. That being said, it does come with detailed instructions, plenty of trade examples, full support and a money back guarantee.
If you are looking to trade forex online, you will need an account with a forex broker. If you are looking for some inspiration, please feel free to browse my best forex brokers. I have spent many years testing and reviewing forex brokers. IC Markets are my top choice as I find they have tight spreads, low commission fees, quick execution speeds and excellent customer support.
Forex Spectrum
$147
Pros
- Trade Assistant
- Clear Buy/Sell Signals
- Any Trading Instrument
- Any Chart Time Frame
- Any Forex Broker
- Set Signal Alerts
- Easy To Use
- Versatile System
- Full Support
- Money Back Guarantee
Cons
- MetaTrader 4 Only
- Requires Some User Input
- Takes Time To Learn How To Use
- Not Very Innovative
- Need To Filter Signals
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.
