FX Shock indicator has been quite popular among traders due to its fancy look on the chart and the easy to understand trading signals generated by the system. Let’s explore the indicator in further detail to see what it is and how it works.
What is the FX Shock indicator?
The FX Shock indicator endeavors to remove the noise on the chart by drawing the blocks on top of candlesticks. These blocks resemble the Renko chart. However, the logic is not the same as Renko’s.
There is no custom setting available for the traders. The system has a dashboard, displayed in the top right corner and an indicator. However, the system offers three templates for scalping, day trading, and swing trading. Each template has distinct settings. However, you can apply any template at any timeframe.
The indicator uses plenty of analytical techniques to generate the signals. Another key advantage is that the indicator is non-repainting. Moreover, it comes with the PatternFinder Pro indicator that helps traders to find more than 40 candlestick patterns on the chart.
FX Shock indicator strategy
The FX Shock indicator is an automated system that generates signals with exact levels to enter and exit. However, the indicator can be used as a standalone tool. You can analyze the charts using FX Shock blocks overlayed on the candlesticks.
The green blocks show a bullish trend while the black blocks show a bearish trend. You can analyze the market in one go. As soon as the blocks change color, you can get ready for a trend reversal and potentially ride the trend from the very beginning.
Moreover, the PatternFinder Pro indicator helps you find candlestick reversal patterns on the chart. You can choose which patterns to show on the chart.
So, you can combine FX Shock and PatternFinder Pro to identify the trend reversals and take positions accordingly.
Buy Signal
Let’s find out the buy setup:
- Wait for a bullish reversal in a bearish market. The blocks must turn green from black.
- Look for a candlestick reversal pattern around the green block.
- You could enter the trade when the bullish candle closes.
- You could place the stop-loss around the lows of the trigger candle.
- You could keep the trade running until you find a black block on the chart.
Sell Signal
Let’s find out the sell setup:
- Wait for a bearish reversal in a bullish market. The blocks must turn black from green.
- Look for a candlestick reversal pattern around the black block.
- You could enter the trade when the bearish candle closes.
- You could place the stop-loss around the highs of the trigger candle.
- You could keep the trade running until you find a green block on the chart.
FX Shock pros and cons
Pros
- The indicator comes with three different templates.
- The package includes free PatternFinder Pro.
- The indicator is automated.
Cons
- You may need to wait a long time to find the trading signal.
- The dashboard is not quite useful for traders.
- Blocks may be complex for beginners.
Conclusion
The FX Shock indicator is a great addition to your trading arsenal. However, the results may vary depending on the currency pair and the timeframe. Therefore, testing the indicator on a demo account is important before going live. The system may trigger false signals more often if a pair stays in a tight range. You will also need excellent money management as with any forex strategy.
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.
