How does the SHI SilverTrendSig indicator work?
Graphically, the software product is displayed on the quote chart in the form of dots of different colors:
- (call) red ones warn of a price increase;
- (put) blue - about its decrease.
When such a symbol appears after the signal candle closes, the likelihood of a new trend movement starting increases. This may happen immediately or after some time.
SHI_SilverTrendSig is based on oscillator data. Trading recommendations for a trader appear when prices move from overbought or oversold zones to the average zone.
Preparing to work with the SHI SilverTrendSig indicator
When installing the SHI_SilverTrendSig indicator for binary options trading on your platform, do not rush to change its standard settings. First of all, evaluate the accuracy of the signals by analyzing a certain period of the chart on history.
The instrument parameters do not need to be changed; it is better for untrained traders not to try to change numbers just like that. For example, the “All Bars” option indicates the number of candles taken for calculations. If it is set to “0”, then all data extracted from the currently loaded graph segment will be taken into account. It is not recommended to touch the remaining two options “Per” “Otstup”.
Instructions for installing indicators in MetaTrader 4 :
How to trade using the SHI SilverTrendSig indicator
Since this tool is an oscillator, it does not work well on strong trend movements, so additional filters are necessary.
SHI_SilverTrendSig is effective on corrections and minor fluctuations, and only as part of a complex strategy, and many of them have been developed (“FX Ghost”, “Nahuatl”, “AOSHI”, etc.).
If you are working in a trending market, the indicator will help predict exit points from the correction for further growth/decrease, and will tell you when it is time to change the direction of transactions, as a rollback begins.
In addition to this indicator, you can use the familiar Moving Average, which has a long period in order to determine which global trend dominates the chart of a trading asset. If the “hints” of SHI_SilverTrendSig coincide with it, then the chance of concluding a profitable deal increases.
The main disadvantage of the indicator is a considerable number of false signals during a flat. In general, the indicator shows quite good results when trading binary options and, when properly combined, for example with “levels,” it can bring significant profits.
Download the SHI SilverTrendSig indicator
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