Rubicon Indicator

In a short amount of time after its release, the Rubicon Indicator gained a lot of attention from traders. The name comes from the phrase “cross the Rubicon,” which means to take a big step toward a big goal that will change your life. This statement, in turn, originates in ancient times, when Julius Caesar made the tough choice to lead his army over the Rubicon river on the Apennines peninsula, risking full and utter power loss if the war was lost.

The directional arrows shown by the Rubicon Indicator make it simple to interpret the market entry signal. The Rubicon indicator is not just another purpose-built indicator; it represents a complete trading methodology that works across all timeframes and forex pairs.

This algorithm is often used by new traders who want to start by following the trend. This is because the indicator places a buy/sell arrow on the chart, suggests where to place a pending order, and recommends where to place stops and take profits.

What is the Rubicon Indicator?

Indicators like the Rubicon are part of the global algorithm that creates technical markings and optimal trade points automatically. In addition, this algorithm specifies when it is time to get out of the position, i.e., where the stop-loss and take-profit levels could be set. The program can be used for both market analysis and a whole trading strategy. You can use the Rubicon indicator with any time frame and currency combination. This indicator’s arrows vanish as they hit the red EMA 116 moving average, so you can’t use it to see how they performed in the past. This is done so that the focus remains on the actual trading signals being sent in real-time.

Rubicon Indicator Strategy

It’s easy to see various setups unfold before your own eyes if you take the time to monitor your charts. In this case, a signal is sent when the fast-moving average (FMA) crosses over the slow-moving average (SMA). The other moving averages help find more detailed buy and sell signals. A blue signal line will appear on your chart when the requirements have been satisfied for a trade. It will be a buy trade if the blue line is drawn above the current price and a sell trade if it is plotted below the current price.

When the price moves over the blue signal line, a yellow arrow will appear on the current bar. When the indicator detects a break in the blue signal line, stop-loss and take-profit levels are shown automatically. If you placed a trade based on the indicator’s recommendations, you’d just make the necessary adjustments to your stop-loss and take-profit levels to match the information shown on the chart.

One problem with this strategy is that you can only use the predetermined periods of the moving averages. On the other hand, one benefit is that you can use more than one timeframe. For example, if the signal seems unreliable, you should look at the situation on a chart that goes back further in time. On the chart, the orange price point indicates where a trader should put a stop-loss order, while the yellow price point indicates where a trader should put a take-profit order. Remember that the indicator only gives suggestions, not actual orders. This means that you can try different things to find the best risk-to-profit ratio for each currency pair based on how volatile it is.

Buy Signal

Rubicon Indicator
Rubicon Indicator Buy Signal

You can open a long position if the following conditions are met:

  • The red line is moving upwards, indicating an uptrend
  • The red line crosses the blue moving line from top to bottom
  • Take profit and stop loss for short trades are set to the yellow price label, with the stop loss slightly below the red price label.

Sell Signal

Rubicon Indicator
Rubicon Indicator Sell Signal

When selling, a trader should look for the opposite of what he or she would look for when buying:

  • The red line is moving downwards, indicating a downtrend
  • The blue line crosses the red moving line from top to bottom
  • Take profit and stop loss for short trades are set to the yellow price label, with the stop loss slightly above the blue price label.

Rubicon Indicator Pros & Cons

Pros

  • The indicator plots a specific buy or sell signal on the chart.
  • You can combine several timeframes

Cons

  • Only the predetermined periods of moving averages can be used.
  • It produces erroneous signals in ranging markets.

Conclusion

Even though the Rubicon indicator can be used on all timeframes, evidence from experiments shows that it works best on the M15 and H1 timeframes. At the same time, if a trader wants to use this indicator as a trading tool, he or she must do their own tests to figure out how the algorithm works with a traded asset and how long it should be used for.