Using only one of this indicator will give you profits, but there are some time when you are forced to close a loss. You can convert this losses by combing the two to eliminate false signals.
The Demark Trend Alert forex indicator is founded on breaking through the price of Demark line. When this happens the there is a clear indication of the direction of the market trend. The indicator displays an alert when the Demark line is crossed showing which timeframe the cross occurred and the price at which it occurred. The buy signal of the Demark Trend Alert Indicator occurs when the prices crosses the downward line and an up arrow appears. The sell signal occurs when the prices crosses the ascending line and a downward pointing arrow is formed.
If you look at the above chart you will notice a blue unfilled arrow pointing downwards Just a the point where the prices have crossed the downward trend line.
However so as to be sure wheteher to open a sell position or not as in the case of our chart above the trader has to use another indicator.in this case the best indicator to use is the HalfTrend indicator v1.02.
This indicator, the HalfTrend indicator, forms a blue arrow upward arrow to signal an uptrend and posible pint to place a buy odrer and a red downward arrow signalling a down trend and a possible position to opoen a sell position.
How to interprate the two combined.
A posititon should only be opened if the HalfTrend v1.02 and the Demark Trend Alert indicators’ signals agree. That is if the Halftrend signal says sell and Demark Trend Alert indicator signal says sell or if both says buy.
Placing a buy order: the buy order should be placed when there is buy signal of the Demark Trend Alert Indicator that occurs when the prices crosses the upper trend line and an up arrow appears. Also there should be a HalfTrend v1.02 blue upward signal at the same time.
You may notice that there is a line of the HalfTrend v1.02 indicator that follows the market trend. After that the appearance of an arrow the color of this line changes its color to that of the arrow that have just formed. When this line is blue it doesn’t mean it is clear to open a buy position even if the Demark Trend Alert indicator gives its signal. You should wait until there is a HalfTrend v1.02 arrow to confirm.
Placing a sell order: the sell order should be placed when there is sell signal of the Demark Trend Alert Indicator that occurs when the prices crosses the lower trend line and an up arrow appears. Also there should be a HalfTrend v1.02 red downward signal at the same time.
There is a line of the HalfTrend v1.02 indicator that follows the market trend. After that the appearance of an arrow the color of this line changes its color to that of the arrow that have just formed. When this line is red it doesn’t mean it is clear to open a sell position even if the Demark Trend Alert indicator gives its signal. You should wait until there is a HalfTrend v1.02 red arrow to confirm.
Once you entered your trade you can close them when either of the indicators give an opposite signal or you may use stop losses and take profits to do so.
Free-Demark-Trend-Indicator . rar
No comments:
Post a Comment