MMR Indicator

MMR Indicator is a technical tool which can assist traders in predicting trend direction and other useful zones when trading the financial markets. It can be used by both newbie, intermediate, and advanced traders.

What is the MMR Indicator?

This indicator is composed of three separate indicators that work together to produce directional-change signals. The three indicators that are used within this advance and modified indicator are as follows: moving averages, which are used to provide crossover indications; then there’s the MACD indicator, which has its own bidirectional histogram to show you which direction the market is trading in; and an RSI, which functions in tandem with the moving average to generate crossover signals.

Setting up the MMR Indicator
Setting up the MMR Indicator

MMR Strategy

To produce buy and sell signals, the MMR Indicator combines Moving Average crossover with the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD). When a green bar emerges, traders can enter long positions and exit when the indicator line crosses below zero. Shorts can be initiated when a red bar shows, and the trade can be squared off when the indicator crosses above zero.

Buy Signal

The following could be your checklist for a buy trade:

  • When the green histogram bars appear.
  • When the indicator line crosses above the zero-signal line.

Once these events occur:

  • You could open a buy position after you confirm your entry with bullish candlestick patterns.
  • You could set your stop loss just below the nearest swing low.
  • You could set your take profit at the nearest resistance zone, or you could exit trade when the indicator line crosses below the zero-signal line.
  • For good risk management, I would only consider trades with a risk to reward ratio of at least 1:2.
MMR Indicator Buy Setup
MMR Indicator Buy Setup

Sell Signal

The following could be your checklist for a sell trade:

  • When the red histogram bars appear.
  • When the indicator line crosses below the zero-signal line.

Once these events occur:

  • You could open a sell position after you confirm your entry with bearish candlestick patterns.
  • You could set your stop loss just above the nearest swing high.
  • You could set your take profit at the nearest support zone, or you could exit trade when the indicator line crosses above the zero-signal line.
  • For good risk management, I would only consider trades with a risk to reward ratio of at least 1:2.
MMR Indicator Sell Setup
MMR Indicator Sell Setup

MMR Pros & Cons

Pros

  • The MMR Indicator can be used by traders to predict potential price reversal zones.
  • The indicator can be used to detect trend direction as well as divergences.

Cons

  • The MMR Indicator may sometimes mistake a trend reversal for a trend correction, and vice versa.
  • This indicator may not meet the trader’s expectations in a narrow-ranging market on smaller timeframes.

Conclusion

The MMR Indicator is worth including in your trading arsenal. A good forex indicator may boost your chances of success. Nonetheless, keep in mind the importance of having realistic expectations. MMR Indicator, like any other technical analysis tool, is not capable of providing 100% accurate signals. As a result, this forex indicator occasionally generates false signals. Its performance will be highly variable depending on market conditions. You are free to create your own trading system based on it.

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