You might have used several technical indicators that help you analyse the forex market. However, it can be a challenge to interpret some of these indicators. Ever wondered about using a trading signal-generating indicator? Well, the German Sniper indicator is one such tool that can help to identify actionable buy and sell signals on all of your favourite currency pairs and chart time frames. It also includes optional take profit and stop loss levels which makes it a complete all in one trading system. However, there are some limitations which I will cover in this guide.
What is the German Sniper Indicator?
The German Sniper indicator is a handy forex trading tool that uses automated algorithms to generate trading signals on your chart. You can use the signals to trade your account as part of a more complete forex strategy with other analysis to confirm entries. Let’s see how it looks on the chart.
You can see the entry level and take profit level on the chart. Potential take profit levels are also displayed on the chart.
This simple tool suits beginner traders who may not have enough experience in analyzing the market by themselves. However, I found it to give too many false signals when used along. Therefore, I would want to confirm all of the German Sniper signals with other technical indicators and price action analysis.
German Sniper Strategy
The German Sniper Indicator is like a semi-automated tool that does not need much analysis or interpretation. It has no input tab in the settings. You can only change the colors or choose which timeframes to show the indicator depending on your individual trading style.
All you have to do is look at the entry level and follow the instructions displayed in the top left corner. So once the condition is fulfilled, you can look for trades on the asset in question.
You can apply this indicator to any financial instrument including forex, commodities, stocks and indices. However, the indicator does not show signals in history which is a disadvantage as you cannot visually backtest the indicator. This would have been a good way to understand it better but you can always practice on a demo trading account with it to see how things go.
Buy Signal
Here’s the strategy to find a long signal:
- You should wait for a buy signal to appear on your chart. It shows a horizontal line with the text “buy above the level.”
- Once the price shows a strong bullish candle, you can enter the trade.
- The take profit level is already displayed on the chart. You can copy the level into your position.
- The stop loss is also displayed in the top left corner.
- Alternatively, you can set your own stop loss and take profit levels.
Sell Signal
Here’s the strategy to find a short signal:
- You should wait for a sell signal to appear on your chart. It shows a horizontal line with the text “sell below the level.”
- Once the price shows a strong bearish candle, you can enter the trade.
- The take profit level is already displayed on the chart. You can copy the level into your position.
- The stop loss is also displayed in the top left corner.
- Alternatively, you can set your own stop loss and take profit levels.
Conclusion
The German Sniper indicator can be a great companion for beginners who are looking for some inspiration in terms of trade ideas. Traders can combine the tool with any other forex strategies or use it as a confirmatory tool. I found the indicator to generate quite a few false signals so I personally think the indicator would be better used just to help identify the general bias of an instrument rather than for entry and exit points. Additionally, the suggested stop loss and take profit levels may not be suitable for everyone but you are free to use your own money management.
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.
