What is the Show Pips Indicator?
The Show Pips Indicator is a technical analysis tool used in the foreign exchange (forex) market to display the current profit or loss in pips for a specific currency pair. The indicator is typically displayed as a small box on a forex trading platform, with the current pip value updated in real-time as the market moves. Show Pips Indicator is a simple and easy to use tool that helps traders quickly assess the profitability of their current positions and make informed trading decisions. It can be used in conjunction with other technical indicators and charting tools to provide a comprehensive view of the market.
Show Pips Indicator Strategy
A strategy for using the Show Pips Indicator in forex trading is to use it in combination with other technical indicators to identify trends and potential entry and exit points. For example, a trader may use a moving average crossover system along with the Show Pips Indicator to identify a trend and then use the Show Pips Indicator to track the current pip value of their position. Once the current pip value reaches a certain level of profit, the trader can close the position and lock in the profit.
Another strategy is to use the Show Pips Indicator to monitor key levels of support and resistance. For example, if a currency pair is trading near a key level of resistance and the Show Pips Indicator shows a negative value, a trader may consider entering a short position with a tight stop-loss. On the other hand, if the currency pair is trading near a key level of support and the Show Pips Indicator shows a positive value, a trader may consider entering a long position with a tight stop-loss.
Buy Signal
Here is a potential buy signal using the Show Pips Indicator in forex trading:
- The currency pair is trading above a key moving average, indicating an uptrend.
- The Show Pips Indicator is displaying a positive value, indicating a profitable position.
- A relative strength index (RSI) indicates that the currency pair is oversold.
- A Fibonacci retracement level indicates that the currency pair is at a key level of support.
Sell Signal
Here is a potential sell signal using the Show Pips Indicator in forex trading:
- The currency pair is trading below a key moving average, indicating a downtrend.
- The Show Pips Indicator is displaying a negative value, indicating an unprofitable position.
- A relative strength index (RSI) indicates that the currency pair is overbought.
- A Fibonacci retracement level indicates that the currency pair is at a key level of resistance.
Show Pips Indicator Pros & Cons
Pros
- Easy to use: The Show Pips Indicator is a simple tool that displays the current profit or loss in pips for a specific currency pair. This makes it easy for traders to quickly assess the profitability of their current positions and make informed trading decisions.
- Real-time updates: The indicator updates in real-time, providing traders with a current view of their position’s performance.
- Helps in setting profit targets: The Show Pips Indicator can help traders set profit targets in pips, which can be useful in locking in profits at a desired level.
- Helps in setting stop-loss: The Show Pips Indicator can also be used to set stop-loss levels to limit potential losses.
Cons
- Limited information: The Show Pips Indicator provides only a single value, the current pip value, and does not provide any other information such as trend or volatility.
- Only indicates the current performance: The Show Pips Indicator only indicates the current performance of a position, and does not provide any information about future performance.
- Does not account for the volatility: The Show Pips Indicator does not account for the volatility in the market, which can lead to losses
- Over-reliance: Some traders may rely too much on the Show Pips Indicator, which can lead to poor decision-making. Not suitable for everyone: Scalping is not suitable for everyone as it requires a high level of focus and attention, and it may not be suitable for traders who can’t handle stress.
Conclusion
In conclusion, the Show Pips Indicator is a valuable tool for forex traders, as it provides real-time information on the current profit or loss in pips for a specific currency pair. It can be used to set profit targets and stop-loss levels, which can be useful in managing risk and locking in profits.
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.
