Kaufman 3 indicator draws two lines on chart: white and pink. Kaufman V3 determinates direction of the trend (trend is your friend, right?): when white line is above pink line we have a uptrend, when white line is below pink line we have a downtrend. It’s easy as it is. At first glance it may look to simple but this indicator works really well as it use adaptive moving averages which respond to market changes much quicker than ‘standard’ MAs.

Below you can find rules for trading with Kaufman 3 indicator:

Buy Signal:
– open long position when white line cross above pink line and candle close above white line

Sell Signal:
– open short position when white line cross below pink line and candle close below white line

Bottom Line

The Kaufman3 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.

Download Free Forex MT4 Kaufman3 Indicator

To download the Kaufman3 Indicator for Metatrader 4 (MT4) for free just click the button below:

Kaufman3 Indicator Free Download


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