When you look at the indicator’s name, the first thing that probably comes to mind is that it separates high probability transactions. That’s what the indicator tries to do. The Probability Meter employs a powerful formula to calculate a global percentage from a set of standard indicators. They are made up of 13 indicators spread across seven timeframes. You can optionally enter two extra indications of your choice when encoding the indicators.
What is the Probability Meter Indicator?
The Probability Meter Indicator is a trend indicator that attempts to provide traders with unambiguous entry and exit points for any trading pair on which it is used. The indicator is applicable to any broker and any pair. It is also applicable to all market sessions and chart timeframes.
There are no complex lines, drawings, or information to interpret when utilizing the indicator, but the traders would have to look at the indicator’s values. It incorporates current feed and is thus suitable for short-term trading.
Probability Meter Strategy
The Probability Meter Strategy is a technical system that may be used by traders of all skill levels. It tries to send forth clear signals. First, it indicates to traders the likelihood of the price direction. They could also wish to consider alternative values, such as multi-info+. The indicator displays the trend’s probability as a percentage. For a buy trade, for example, green color and above 75 indicates a strong buy. Furthermore, for the multi-info+, the indicator displays a green color and a value of 85 (far above 75). This is a strong indication that you could begin a long position in the currency pair.
Buy Signal
The following could be your checklist for a buy trade:
- When the market is up trending.
- When the indicator shows a buying possibility.
Once these two events occur:
- You could open a buy position once the Meter signals a BUY and 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 Meter signals a SELL.
- 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 market is down trending.
- When the indicator shows a selling possibility.
Once these two events occur:
- You could open a sell position once the Meter signals a SELL and 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 Meter signals a BUY.
- For good risk management, I would only consider trades with a risk to reward ratio of at least 1:2.
Probability Meter Pros & Cons
Pros
- The Probability Meter Indicator uses a strong formula to predict the possible trend direction that would prevail.
- The indicator can be used with any forex trading system or strategy to confirm trading entries or exits.
- This indicator is a nice tool for scalping or short-term trading because it is based on current feed and is updated with each new tick.
Cons
- The Probability Meter Indicator may sometimes give a signal for a mere trend correction which could possibly not play out as expected.
- The indicator may give lagging signals which would negatively affect the trader’s risk to reward ratio.
Conclusion
The Probability Meter Indicator provides indications of whether to buy or sell via percentage predictions. The traders would need to pay close attention to the values displayed on the Probability Meter. The traders could prepare to enter a long position if it produces a buy signal or enter a short position if the Meter produces a sell signal. They should, however, ensure to confirm the signals before picking respective trades and practice on a forex demo account to get used to how it works.
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.
