The radar signal trading system is based on logical analogy. The system’s analysis was derived from computer methods with their origins in market movements. There is also the possibility of manual assessments based on technical indicators. In most cases, the Radar signal trading system will issue buy or sell signals based on a predetermined set of formulas. This is how traders quickly evaluate many currency pairs. Keep reading to learn more about the Radar Signal Trading System and how to use it in your forex trading.
What is Radar Signal Trading System?
The Radar Signal Trading System is a forex day trading system. This forex trading strategy uses a mix of numerous technical indicators to strip away unnecessary data from the market and give a clear picture of what is happening at any given time.
When all of these technical indicators indicate the same thing, the likelihood of that occurring increases. This trading system’s primary selling point is the clarity of the buy and sells signals it provides. This makes it easy to use but you will still need excellent money management to get the most out of it, as with any forex strategy.
The main feature of the Radar Signal Trading System is that it alerts traders to the optimal buying and selling times. An additional great feature is that it provides you with attainable goals to work toward. A lot of the time, traders are puzzled about the take profit and stop loss levels, however, this trading strategy can help you overcome this issue by giving “optional” levels. I would personally use my own fixed targets based on my risk strategy and may even close trades based on price action rather than waiting for fixed levels to be hit.
Radar Signal Trading Strategy
The Radar Signal Trading System comprises four indicators and one template.
- Daily_Open.ex4
- Radar Signal Mod.ex4
- Radar Signal.ex4
- StochHistogram.ex4
Loading the “radar signal trading system.tpl” template into your chart will cause those indicators to appear. The system is optimized for the M30 and H1 time intervals. Given that it is a short-term trading strategy, one that relies in part on the open price at the start of the trading day, this makes a lot of sense.
Opening a buy or sell order is signalled on the chart by the radar signal indicator. The price must be above or below the daily open line, and the stochastic histogram must display either green or red values.
The stochastic histogram shows that bullish price momentum is represented by green values, while bearish price momentum is represented by red values. You could take advantage of the trend, whether it’s going up or down, and set your stop loss 30–40 pips below the entry price.
When the blue horizontal line labeled “Target” is achieved, the system’s developer suggests you should close your buy trade. You have the option of setting the trade’s target price at the level of the blue line or waiting for the price to reach this level and then closing the position manually.
Buy Signal
- Ensure that the pair you are analyzing is in an uptrend.
- Every day at the market opening, the signal to “Buy Entry” must appear.
- The Radar signal indication should be mostly blue.
- The Stoch Histogram should be growing rather than shrinking.
- As soon as the requirements above are satisfied, open your long position.
- Stop losses right below the most recent swing low.
- The blue horizontal target level represents your profit target.
Sell Signal
- Ensure that the pair you are analyzing is in a downtrend.
- Every day at the market open, check to see the signal “Sell Entry”.
- The Radar signal indication should be mostly red.
- The Stoch Histogram should be in the negative territory
- As soon as the requirements above are satisfied, open your short position.
- Stop losses right above the most recent swing high.
- The blue horizontal target level represents your profit target.
Radar Signal Trading System Pros & Cons
Pros
- It tells you when to buy low and sell high, giving you a competitive edge.
- It provides you with predefined (optional) target levels.
Cons
- There will be false signals so you need to confirm trades.
- Requires good money management and discipline.
Conclusion
The use of semi-automated trading strategies is on the rise amongst traders everywhere. Although these measures are implemented with caution in an effort to lessen the likelihood of human mistakes, they are not without their flaws. Traders can get buy and sell signals based on detailed technical analysis thanks to the Radar Signal Trading System.
When trading using the Radar Signal Forex system, you can use any entry, stop-loss, and take-profit strategies you choose. Trade in line with the overall trend, and use a demo account to hone your skills before risking real money, which you can get free of charge from most forex brokers. I would only ever test a new trading strategy on demo at first to see how things go before making any commitment.
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.
