Introduction to the 3X Parabolic Regression Indicator
The 3X Parabolic Regression Indicator draws two linear trend channels calculated on the standard deviation (with different periods) and a single curvilinear trend channel calculated on a parabolic regression.
The 3X Parabolic Regression Indicator fits all kinds of timeframes and currency pairs. It is displayed directly on the main trading chart. The default settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences.
How does it work? How to apply in trading?
Trading Rules Explanation
As we mentioned at the beginning of this article, the 3X Parabolic Regression Indicator consists of three channels. Generally speaking, you should be looking for sell trades, at the touch of upper bands of these channels. Conversely, buy trade opportunities occur at the touch of lower bands of the channels.
Follow these steps for a long trade:
- The slope of blue and yellow channel is upwards
- Price touches and rejects lower band of yellow channel
- Set stop loss a few pips below the last swing low of the market
- Take profit or exit trade whenever price touches upper band of yellow channel or use your own method of trade exit
Follow these steps for a short trade:
- The slope of blue and yellow channel is downwards
- Price touches and rejects upper band of yellow channel
- Set stop loss a few pips above the last swing high of the market
- Take profit or exit trade whenever price touches lower band of yellow channel or use your own method of trade exit
As always, to achieve good results, remember about proper money management. To be a profitable trader you need to master discipline, emotions, and psychology. It is crucial to know when to trade, but also when not to trade. Avoid trading during unfavorable times and market conditions like low volume/volatility conditions, beyond major sessions, exotic currency pairs, wider spread, etc.
How to set up the 3X Parabolic Regression indicator in MT5?
Download the 3X Parabolic Regression.rar archive at the bottom of this post, unpack it, then copy and paste the 3X Parabolic Regression.ex5 or 3X Parabolic Regression.mq5 indicator files into the MQL5 folder of the Metatrader 5 trading platform.
You can gain access to this folder by clicking the top menu options, which goes as follows:
File > Open Data Folder > MQL5 > Indicators (paste here).
Now go to the left side of your MT5 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.
The 3X Parabolic Regression indicator is well worth adding to your trading collection. A good forex indicator will most probably enhance your chance of success. Nonetheless, remember about having realistic expectations. Just like any other technical analysis tool, is not capable of providing accurate signals 100% of the time. Thus, this forex indicator provides false signals occasionally. Its performance will vary significantly depending on market conditions. Feel free to develop your own trading system based around it. Don’t forget that we still have more great free forex indicators to try.
Download Free Forex MT5 3X Parabolic Regression Indicator
To download the 3X Parabolic Regression Indicator for Metatrader 5 (MT5) for free just click the button below: