I am always on the lookout for new forex trading indicators that can help improve my trading strategies. With so many forex indicators available, both free and paid, it can be hard to find something that is worth implementing into your day trading strategy. Every so often, you come across an indicator that stands out from the rest, such as the innovative GEMSCODE. This is a very powerful trading indicator that can provide you with easy to understand buy and sell signals for all of the major assets that you like to trade.
How does GEMSCODE work?
GEMSCODE is a premium trading indicator for the excellent TradingView charting platform. You simply load it onto your charts and it will find trading signals for you. Once the unique algorithm built-in the indicator finds a possible trade opportunity, you can then decide if you would like to take the position or confirm it with your own market analysis. This makes the GEMSCODE very easy to use, regardless of your prior experience level.
The GEMSCODE indicator can be used on any instrument and chart timeframe, therefore it is suitable for all types of trader. It does not matter if you want to scalp the lower chart timeframes for a few pips, or hold positions for the long term. This TradingView indicator is extremely versatile and can be used standalone or combined with your other favourite indicators. You can trade forex, cryptos, stocks, commodities and more.
What I like about the GEMSCODE indicator is that it can do a good job of spotting emerging trends which means you could get in to a big move at an early entry point. Of course, not all signals will catch big moves but you can use a signal in the opposite direction as a possible exit point to exit at the earliest opportunity. Otherwise, if there is no early exit signal, moves can continue for hours, days and even weeks.
I personally prefer to trade manually on the higher chart timeframes as I find that this can help to filter out some of the noise from lower timeframes. I don’t want to be getting whipsawed in and out of the markets, but GEMSCODE does have built-in filters to try and avoid ranging market conditions which I think it does quite well.
Another great feature of the indicator is that it can send you alerts when it finds a valid entry or exit signal. This can save you lots of time as it means you do not need to spent countless hours scanning the charts and waiting for opportunities.
What strategy does GEMSCODE use?
I have tested thousands of forex indicators over the years and must say that a large majority of them are simply repackaged basic indicators with adjusted settings. I have even seen a simple moving average being renamed and sold as something unique! Thankfully, GEMSCODE uses a very innovative algorithm that combines a variety of advanced and important trading principles to create one complete trading system. The core functionality of the indicator has been developed with key consideration given to the Elliot Wave Theory. This is something I have rarely seen implemented within a trading indicator, so it certainly helps GEMSCODE stand out from the crowd.
What is the Elliot Wave Theory?
The Elliott Wave theory is a form of technical analysis that looks for recurrent long-term price patterns related to persistent changes in investor sentiment and psychology. The theory identifies impulse waves that set up a pattern and corrective waves that oppose the larger trend. In Elliott Wave Theory, the traditional definition of motive wave is a 5 wave move in the same direction as the trend of one larger degree. To use the theory in everyday trading, a trader might identify an upward-trending impulse wave, go long and then sell or short the position as the pattern completes five waves and a reversal is imminent. However, GEMSCODE does all of the complex analysis for you behind the scenes, so you just need to be ready for the trading signals that it generates and act accordingly.
Gems Spike Warnings
When using the GEMSCODE indicator, you will notice something that the developer calls “Gems Spike Warnings”. I really like this feature as it helps to give a clear visual representation of what direction the market may be headed which not only makes the indicator very user-friendly but also gives us an additional filter for our trades.
The big red spike warns of weakening customer pressure to push the price down. After passing the second line, we may expect a change of trend in the opposite direction. When a big green spike appears and passing second line, we may expect a weakening sales trend and the price again changing in the opposite direction.
There is a variety of GEMSCODE packages that you can choose from depending if you want monthly, quarterly or annual access. The longer you subscribe for, the more you can save. I think the price is very reasonable when you consider that you get access to a ready-made trading system that can be used to get trading signals with minimal effort. The monthly option is a great way to get a feel for how GEMSCODE works before deciding if you would like to make a more long-term commitment. Either way, everything is included in all of the packages and you get excellent support from the very polite and helpful developer.
I think that the GEMSCODE indicator can be used to great a very powerful trading system for anyone who is familiar with TradingView charts and looking to generate possible trading signals with minimal effort. You may want to confirm each signal that it generates and set your own money management in terms of stop loss and take profit. That being said, you can also use the GEMSCODE signals in the opposite direction to exit your positions. I really like how the indicator is so versatile, as it can be used on any chart symbol and timeframe. You can even use it as part of your own trading strategy or as it is if you are looking for more simplicity.
The only slight disadvantage I see, is that you will need to be a TradingView user as the indicator is not currently available for the MetaTrader platforms. However, that can be used as a positive thing if you have not already started using TradingView as this may be a good reason to get acquainted with one of the most popular charting platforms out there.
Of course, there is no magic indicator that can guarantee 100% winning trades. However, there is a good logic behind the GEMSCODE algorithm and it can certainly give you an edge provided you have your money management and discipline intact. The GEMSCODE unique algorithm considers all aspects of the indicators integrated into it before generating a buy or sell signal. I think this helps to cancel out false positives and goes some way towards building a sufficient strategy. It also includes multiple trend reversal signals with two signal modes.
Overall, this is one of the top indicators I have come across for the TradingView platform and think it is certainly worth a try. I would personally start on a demo trading account to begin with to see how you get on and help decide if it is something that you would like to use as part of your trading 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.