What is the best indicator? It doesn’t exist, but there is a solution.
Maybe you are among those who claim that the indicators are not working and maybe you are right, but there is a way to solve the problem. We give our solution, as well as a practical trading system.
Those who have experience with the use of indicators will surely have tried the systems available on the net, free or perhaps for a fee, where even the best strategies warn to pay attention to stationary charts, for example, thus recommending the phases of high volatility. But the problems remain, let’s see why.
The classic indicators
Let’s take as an example the famous crossing of moving averages , considered a classic. At first sight it appears effective, however in times of market stagnation the indications of entry often alternate, thus making the system useless. The use of any “filters” does not solve the problem.
Even the Bollinger Bands are not without trouble, quite the opposite. Prices often continue following the bands, just where a reversal would be expected.
The solution to the problem lies in using an indicator that we believe is valid only at the appropriate times .
FreeOne’s solution
Our recent trading system, based on the “SuperClassic” indicator, is giving good results, however valid as it may not be the solution to all ills.
The indicator surprisingly identifies the reversal zone. Here is an example (AudUsd at 9 pm):
If we take into account the trading hours, we find that the best results are in the low traffic trading hours, such as those at night for example. The reason is simple. An indicator like this that relies on finding a reversal point is likely to fail during high traffic hours. Despite having obtained a first reversal, prices could then resume the direction of the (often) strong trend, thus leading to a loss.
Instead an indicator that is based on the continuation of the trend will be excellent during the activity of the major exchanges.
In practice: the use of a single indicator that does not take into account the timetables is unlikely to give the desired results.
The FreeOne system with 2 indicators.
After having deployed the first “SuperClassic” indicator based on the search for the reversal point, here is a new indicator that completes the system, the “Magnet Arrows “.
The name Magnet recalls the operation, the prices are “attracted” in the direction of the trend, in practice it works in reverse of the SuperClassic, despite having characteristics and settings that are based on the different levels of traffic.
And let’s get to the practical tests, using for example the “trend following” Magnet Arrows indicator. Here is a part of our trades with the MT2 automatic system. The times are +7 GMT, and the results show that the indicator works very well during the busiest times, resulting poor or even often losing during the lateral phases. Just the opposite of what happens with the SuperClassic.
Magnet Arrows indicator. Green areas refer to the busiest times. The Martingale is no longer needed.
Green areas refer to the busiest times. The reds in the side stages. In these time bands the indicator is no longer used and is instead replaced by the SuperClassic.
Trading hours
Based on our tests these are the times of use:
SuperClassic indicator (inversion): from 6:00 pm to 8:00 am
Magnet Arrows indicator (trend): from 8:00 am to 6:00 pm
Where to request the trading system
The SuperClassic indicator is already available for traders on the dedicated page (SuperClassic Indicator with Arrows)
The MagnetArrows indicator will soon have its own page / tutorial, but in the meantime it is already possible to request it under the same conditions as the SuperClassic.
We remind you that these are not indicators chosen from among the many on the net, but original indicators made by us and used daily in our personal trading.
The FreeOne signals indicator: The “TOTEM Signals Strategy”
You will think: – … but then the Totem? Only one indicator for each time slot…? –
The Totem is not a simple indicator but a trading system that uses indicators as an aid to the “Price Action”. It is used in the forzaforex.it trading signals and is not suitable for automatic systems (as the previous ones described above). In short, it requires the presence and commitment of the trader. His results (71% to date!) are here .
