Contrast Indicator perfectly suited
for scalping and long-term trade. The main principle of the indicator lies in
the definition of contrast. That is, to determine the true nature of the
current movement, a comparison with the movement preceding it is necessary.
This approach allows to catch new movements in the market, which are likely to
continue.
Characteristics
of Contrast Indicator
·
Currency
pairs: Any
·
Trading
Time: Around the clock
·
Timeframe:
Any
How it
works?
Contrast Indicator consists
of two parts:
1.
First (Contrast) - in the form of red and yellow lines on
the likeness of the channel. This indicator has only one parameter in the
settings - coeff. Increasing this parameter further spreads the
lines between each other, and now they will need more time to cross. You can
also set the coefficient with the minus sign (-), then the signals will appear
more often. This function may be necessary for traders who trade binary options.
2.
Second (Contrast-mtf) - in the form of a histogram in a lower
window, which shows the values of the indicator from different timeframes. In
the settings, you can also specify the coefficient and the values of four
timeframes (next 1, next 2, next 3), including the current
timeframe:
An important characteristic
of the Contrast Indicator is that there is no repainting. Repaint
only the value of the current bar and the entire history of the calculated
remains valid even after a restart of the indicator or the terminal. Thus, the
indicator is well suited for manual test on the history. And, therefore, the
order should be opened on the next candle after crossing the lines.
The idea of the Contrast
Indicator is
based on two principles:
1.
The
future market movement cannot be predicted with a probability of more than 50%
2.
The
current trend will continue with a probability of more than 50%
That is, the probability that
the entrance to the deal in the direction of the current trend will bring
profit, is always somewhat higher than entering the market at random.
Rules
of trade by the Contrast Indicator
1.
Yellow
line crosses red from bottom to top
2.
A
green bar appears on the histogram
SELL:
1.
Red
line crosses yellow from bottom to top
2.
A red
bar appears on the histogram:
Contrast Indicator gives us
directly the signal to enter the position. Thus, it remains for us to calculate
the size of the StopLoss and TakeProfit. And of course we need additional
filters. Alternatively, you can enter the market only when all 4 timeframes of
the histogram show the signal in one direction. This will be the most
accurate signal:
Before real trading, you must
test it on a demo account.
In the archive Contrast.rar:
·
##Contrast.ex4
·
##Contrast-mtf.mq4
·
Contrast template.tpl
