Solar Wind Indicator
Platform: MT4 Type: Momentum Last update: December 13, 2024The Solar Wind Indicator for MT4 is responsible for displaying green and red histo bars reflecting ongoing market trends. Behind the scenes, it involves the calculations of the fisher transform. These readings helps forex traders to understand market direction and strength of movement when deciding on a trade.
Example charts:
Trading signals of the solar wind indicator for mt4
As a rule of thumb, the red signals suggest short bias and green signals correspond to bullish outlook. As for potential entries, in theory it should be at the moment of switch between negative and positive values, however it’s a bit tricky as they are being recalculated with evolving volatility.
One of the ideas is to support this approach with moving average (e.g. 100-period ema) and consider only trading setups when both signals are in the agreement. Jump in a trade as soon as this scenario occurs and close trade when solar wind provide opposite readings, but only after closed candle.
Be aware of repainting problem
Unfortunately (and as already mentioned), it suffers for the repainting issue, so traders must account the fact the readings are not final and can change even multiple last bars.
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