Fx Cash Formula Indicator
Platform: MT4 Type: Channel Last update: October 19, 2024The Cash Formula is a leading forex indicator, meaning it was developed to predict upcoming price movements. It uses custom calculations to provide market entries and exits, but it is all based on a channel and a signal line. What’s more, it’s suitable for both beginners and advanced traders.
How to understand the fx cash formula?
The Fx Cash Formula Indicator uses overbought\oversold calculation to generate its trading signals. In the main activity screen, you can see the signal line – the silver line in the middle, and the upper and lower bands of channel colored in green and red. Take signals only in the direction of the slope of the channel. If the channel is going upwards take only long trades. Similarly, if the channel is going downwards take only short trades.
Buy Signal
Follow these steps for a long trade:
- The Fx Cash Formula channel should be indicating bullish trend
- The silver signal line should go outside green band and then bounce back inside the channel
- Buy trade is triggered after the above conditions are met
- Set stop loss a few pips below the last low point of the market
- Take profit or exit trade whenever the Fx Cash Formula reaches opposite band or use your own preffered method of trade exit
Sell Signal
Follow these steps for a long trade:
- The Fx Cash Formula channel should be indicating bearish trend
- The silver signal line should go outside red band and then bounce back inside the channel
- Buy trade is triggered after the above conditions are met
- Set stop loss a few pips below the last low point of the market
- Take profit or exit trade whenever the Fx Cash Formula reaches opposite band or use your own preffered method of trade exit
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