The PAFX Secret Indicator is a straightforward indicator that displays bars in the side window for a specified time period. In the given timeframe, the indicator plots a MACD histogram and acts similarly to the indicator. The indicator also displays Buy and Sell signals from a specific trade. The trading momentum is depicted by the PAFX Secret Indicator histogram. The histogram is represented by ascending and descending bars.
What is the PAFX Secret Indicator?
The PAFX Secret Indicator is quite easy to understand and use. The down bars indicate that the market’s current trading momentum is downward. When the market momentum is negative, it indicates that the market is about to turn positive. The up bars indicate that the market’s current trading momentum is upward. When the market momentum is positive, it indicates that the market is heading downward. Although the indicator can be used on any timeframe, traders might want to use it on longer timeframes to avoid market noise.
PAFX Secret Strategy
The PAFX Secret Strategy employs the use of histogram bars which advise the trader on when to pick trades. The histogram of the PAFX Secret Strategy depicts BUY and SELL signals generated by the PAFX Secret Indicator. The histogram depicts the market trend of the BUY and SELL signals over time. If you want to take a long position, the indicator should be below the zero line and plot bars below the zero line. In order to enter a short position, the indicator should be above the zero line, and the indicators should plot the bars above the zero line.
In other words, if the price is high and the indicator is high, it hints a time to sell; hence you would want to look for selling opportunities in such cases. Whereas if the price is low and the indicator is low, it hints a time to buy; hence you would want to look for buying opportunities in such cases. Traders can also use a momentum indicator such as the RSI in conjunction with the PAFX Secret Indicator.
Buy Signal
The following could be your checklist for a buy trade:
- When the indicator is below the zero line.
- When the indicator plots bars below the zero line.
Once these two events occur, you could do the following:
- Open a buy position just immediately after you notice the signal.
- Set your stop loss just below the nearest support level.
- Set your take profit at the nearest resistance zone.
- For good risk management, I would only consider trades with a risk to reward ratio of at least 1:2.
Sell Signal
The following could be your checklist for a sell trade:
- When the indicator is above the zero line.
- When the indicator plots bars above the zero line.
Once these two events occur, you could do the following:
- Open a sell position just immediately after you notice the signal.
- Set your stop loss just above the nearest resistance level.
- Set your take profit at the nearest support zone.
- For good risk management, I would only consider trades with a risk to reward ratio of at least 1:2.
PAFX Secret Pros & Cons
Pros
- The PAFX Secret Indicator is easy to understand even by novice traders.
- This indicator shows market momentum over a given period and guides the trader on when to open a trade.
Cons
- The PAFX Secret Indicator is more advisable to be used on longer timeframes.
Conclusion
The PAFX Secret Indicator is a fantastic tool that every trader can benefit from. It displays the market’s momentum over time by plotting the market’s BUY and SELL signals on a histogram. However, it does require the user to confirm signals and as with any manual or automated forex system, you will need excellent money management and discipline.
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