Snake Force Indicator is a trend indicator that compares the force of different price action structures to help traders determine the market’s direction. Traders typically lose a lot of money when they trade against the trend. This indicator is intended to trade in the direction of the trend and to help traders avoid confusion when determining the trend.
What is the Snake Force Indicator?
Based on the strength of the price action, the Snake Force Indicator displays a green and red histogram at the same time. This indicator will plot a thick green histogram above the zero levels if the price is in a strong uptrend.
When the price pulls back during an uptrend, this indicator will plot a red histogram that is less thick than the green histogram. When the price is in a strong downtrend, the indicator will display a thick red histogram below the zero levels.
When the price pulls back during a downtrend, the indicator plots the green histogram, which is smaller than the red histogram. Traders can determine the strength of a trend by comparing the heights of the bull and bear histograms.
Snake Force Strategy
The Snake Force Strategy is used for trending markets. Traders can assess the strength of the trend in two ways. In an uptrend, traders can compare swing peaks to the height of the green histogram and pullback troughs to the height of the red histogram. In a downtrend, traders can compare swing lows to the height of the red histogram and pullback highs to the height of the green histogram. Traders should look for signs of divergence and hidden divergence in price action and the snake force indicator.
Buy Signal
The following could be your checklist for a buy trade:
- When the height of the green histogram is greater than that of the red histogram.
- When price forms ‘higher highs’ and ‘higher lows’ structure.
Once these two events occur:
- You could open a buy position after the bullish structure is plotted and you get your signal confirmation.
- You could set your stop loss just below the nearest swing low.
- You could 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 height of the red histogram is greater than that of the green histogram.
- When price forms ‘lower highs’ and ‘lower lows’ structure.
Once these two events occur:
- You could open a sell position after the bearish structure is plotted and you get your signal confirmation.
- You could set your stop loss just above the nearest swing high.
- You could 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.
Snake Force Pros & Cons
Pros
- The Snake Force Indicator can be used with any forex trading system.
- This indicator helps the trader identify the strength of the trend in order to place trades accordingly.
- This indicator may be used to trade any currency pair and on any timeframe.
- This Indicator can be used in conjunction with other technical indicators to aid confluence.
Cons
- The Snake Force Indicator may not be suitable for trading a ranging market.
- Some additional knowledge of technical analysis may be required, hence posing some challenge for novice traders.
- This indicator may give false signals in some cases.
Conclusion
The Snake Force Indicator is a technical indicator that advises the trader on what trades to place based on the strength of the trend of the asset being traded. It shows the current trend of the market in which it is being used. It is user-friendly and provides trading indications by displaying market direction, however it is susceptible to false momentum. Therefore, this indicator should not be used as a stand-alone trade signal, but rather in conjunction with price action and other technical indicators.
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