Using the FX Cash Formula
In this part you will learn how to use and trade the FX Cash Formula.
FX Cash Formula uses overbought\oversold calculation to generate its signals.
In the main trading screen you can see the main indicator line – the silver line in the middle, and the upper and lower boundaries in green
First filter is to take signals only in the directions of the channel. If the channel is going upwards take only long trades. If the channel is going downwards take only short trades.
LONG SIGNAL is generated when the main line crosses the red line from below.
SHORT SIGNAL is generated when the main line crosses the green line from above.
You can also take the trade if the main line doesn’t actually cross the line, but just touch it and bounces.
Read also: Xmaster Formula Forex Indicator
The FX Cash Formula is optimized for 1-hour timeframe, but can as well be used in any timeframe, both for swing trading and scalping.
For each signal the FX Cash Formula automatically calculates stop loss.
You will see the stop loss in the alert the indicator issues.
Exit long trade when the lower line (Green) is going down.
Exit short trade when the upper line (Red) is going up.