Today I stumbled upon this Buy Sell Arrow Indicator for MT4 that I’m sure many of you would want to know about. I’ve yet to test it intensively myself, but this likely function very much like the Buy Sell Arrow Scalper, judging by how visually similar they appear. You’ll find the download link at the end of this article.
So far, I’ve found this MT4 to be capable of the following:
Draw a blue, upward-pointing arrow pointing to a definite point on the graph. This gives you the go signal to go long.
Draw a red, downward-pointing arrow pointing to a particular point on the graph, which prompts you to short.
Here’s the deal though. I’m not really sure whether or not this indicator has the ability to repaint. It is Saturday at the time that I was writing this article, and that feature is something I can only test out when the market reopens on Monday.
EDIT: I’ve tested and it seems in is non-repainting indicator.
This Buy Sell Arrow Indicator works quite effectively when used in a strong, trending market. However, it gets a little confusing when it is made to focus on a tight ranging market.
Disadvantages of this tool
Here are some of the weaknesses of this Buy Sell Arrow Forex Indicator that I’ve found :
There is a tendency for a sizeable latency between the generation of the trading signals
(represented by the blue and red buy/sell arrows) and the appearance of the price doesn‘t change at the same time that the chart is supposed to indicate. You’ll sometimes see the arrows after the price has already moved quite a bit. As was mentioned before, in a ranging market, the indicator can generate too many false signals due to the short scope of the focus. There can potentially be a substantial stop-loss distance.
Advantages of the indicator
When used on a broad scope, in a strong trending market, the buy/sell indicators work well and can provide you with a lot of opportunities to generate huge profit.
How to Trade Using the Buy Sell Arrow Indicator
This Buy Sell Arrow Indicator is advertised as a standalone and can be used to trade without the help of other programs. As explained above, you only need to buy when you see an upward-pointing blue arrow, and sell when you see a downward-pointing red arrow. This particular Buy Sell Arrow Indicator was supposedly made with smaller trading time frames in mind (Forex Scalping). This can range between one to five minutes. However, you can still use this on larger time frames.
Suggestions for Use
Even though it can be used on its own, I’d suggest combining this Buy Sell Arrow indicator with a moving average indicator. Anything from 25 EMA to as high as 100 EMA would suffice. The reason for using this is to act as a filter. If the price is higher than the exponential moving average, that means that you should only buy trades and ignore the indications prompting you to sell (red arrows). Using a moving average indicator with this indicator can help in minimizing the number of trades you take, and also ensure that the trades you take follow the direction of the main trend so there’s less chance of profit loss.