In the business world, big trading indicators along with a comprehensive trading plan can prove all the difference between a stable profit or a fall. In this article, we show you the best indicators designed to increase profitability.
1- Psych Indicator
How does this indicator work?
- Shows you regular visual aids on the chart.
- Market psychology displays trading signals.
- Used in all time frames.
- It is easy to understand and has clear signals.
- Works well with other indicators and improves entry into positions or even basic candlestick patterns.
Psychological indicators have two important factors:
- First, the oscillator at the bottom panel is an image display oscillator that shows the highs and lows of market psychology. If the psychological indicator is above 80 or below 20, it shows the excess of shareholders (saturation of buying or selling) in the market and also identifies potential points based on the return price movement.
- Second, the arrow-point warnings shown in the diagram are psychological patterns that are more likely to follow the price action that follows the candlesticks, with the arrowhead at the top or bottom of the candle. When a green arrow appears, we can assume that the price is moving upwards, and when a red arrow appears, we can predict the price movement to fall.
How do we use a psychological indicator?
There are several strategies that we can use based on psychological indicators and start by dealing with the details of the trading market. But here are some basic strategies:
- Psychological indicator with trend lines, support and resistance
- Psychic indicator with pin bar
2- LFX Order Flow Trader
How does LFX indicator work?
- Follow orders in the market based on price forecasts.
- Combine order flow techniques in the following process.
- Regular visual aids are displayed on your charts.
Best case in point LFX indicator :
- More than 39,000 pips were earned in 2014 in six currency pairs.
- It is very easy to use and very powerful.
- Works on all time frames.
- With minor changes and optimizations to each underlying asset, it can be exposed to 20% of low and medium annual risk.
- It can be the only commercial product you need.
The trader’s order flow indicator has two important factors:
- The indicator is a picture of the position of the order flow that is done by shareholders in large markets. This is done in two ways: first there is an arrow warning that warns us of changes, a green arrow indicates a pressure Buying and red arrows indicate selling pressure.
- The second aspect of this indicator is that it acts as a continuous confirmation or as a filter, and is represented by a shadow and a dot on the chart. When the green arrow / buy pressure appears, if the next candle confirms the continuation of the current order flow, a dot appears below the candle and around the candle, a color similar to the same point, indicating the direction of the order flow.
How we can use the trader order flow indicator?
There are several strategies that we can use based on the trader’s order flow indicator and we will start by dealing with the details of the trading market. But here are some basic strategies:
- Trader order flow with COT indicator
- Trader order flow by analyzing multiple timeframes
3- Pin indicator
How does this indicator work?
- Automatically shows the pinbar on the chart.
- Has clear and neat visual aids.
- Entering the position automatically indicates the Loss Limit (SL) and Profit Limit (TP) on the chart.
The best case of pinbar indicator
- The indicator looks at market pinnacles, so you do not have to spend hours searching for pinnacles to make sure you do not miss a trade.
- It is fully customizable, so you can find and adjust the parameters for your desired pinbars.
- Works well with other indicators with more possible settings.
- It is very effective in all time frames.
How does this indicator work?
There are several strategies that we can use based on the psychological index and start by dealing with the details of the trading market. But here are some basic strategies:
- Daily pinbar strategy
- Psychic indicator strategy (psychic) and pin bar
4- COT indicator
How does COT indicator work?
- COT data is uploaded automatically and weekly according to the C.F.T.C.
- Shows a clear and easy-to-read scale to read the current and historical position of the target market.
- Draws the direction of shareholders in the market.
Best case of COT indicator
- It is used in many mutual funds and supports the annual return on investment.
- If used in 4 or 5 markets with 182 day base settings, you can easily get 10% per annum with mild risk. As a component trader, you can earn multiple times using the leverage.
- This means that you do not have to spend your time encrypting weekly data, which can be frustrating.
- Gives you a clear guide to the banks and institutions in business.
- Allows you to track historical location against historical price movements and easily create profitable trading strategies.
The COT indicator is shown with 6 panels with blue and green lines. Each panel includes a different scale:
- Index: A typical stochastic in a grid position
- Power: Examines the purchasing position of the network relative to the position of the entire network and indicates the power to move in general situations.
- Momentum: Shows the difference between the current index and the same index of the previous 6 periods to provide a reference for trends when reaching the end point.
- Network Position: Shows how three types of operators (commercial, non-commercial and stockbroker) are in the market.
- WILLCO: Modified index scale changes make reading easier.
- Open Interest: A volumetric instrument that indicates the extent of open positions in the market.
The best strategy for using this indicator
There are several strategies that we can use based on the COT indicator and start by dealing with the details of the trading market. But here are some basic strategies:
- COT indicator and pinbar
- COT indicator and trader order flow