The EFC Indicator basic concept is to open position as a reversal trend is detected. As soon as RSI divergence is detected, the indicator puts buy/sell stop order at the level, which the price should reach to be sure the new trend starts.
Since this indicator works that same way as the RSI 80-20 strategy works you will find it very similar to this strategy only we will give you a picture of the indicator in action and what we recommend doing when you see a possible entry.
Note: The EFC indicator is not an automated system. This indicator shows you where the recommended placement of the stop loss, entry order, and take profit should be based on the strategy. We highly recommend you try it on a demo account before using this on a live account. This indicator will work and show you great places to enter trades. Always consider how liquid the market is and be aware of news events.
How to trade with the EFC indicator?
You got this great trading tool we provided, you learned about all of the unique features it comes with but how do you trade with this indicator…
Step One: Search the Currency pairs for signs of reversals by looking for the entry line + orange candles.
Step Two: Wait for Divergence. This occurs when the candles turn dark blue.
Step Three: Entry. Once there is divergence and the price action touches the set Entry line then the trade recommendation will now activate.
A green arrow up mean that this currency pair is heading for a reversal and you should BUY this pair. So if the colored candles are appearing below the entry line then you know this will be a buy trade.
That is the basic strategy to using this indicator for a buy trade. Wait for the RSI trigger (orange candles) Divergence (dark blue) and then entry (Green up arrow). Once all occur make the entry, place your stop and your TP at the recommended lines. Same sequence goes for a sell trade only the arrow will be a down red arrow and the candles will be red.
EFC Indicator free download.
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