This indicator was created to automate Elliott 's wave principle. Given the objectivity of the wave analysis, Fibonacci levels will confirm the drawing of the waves. It is these two ideas that are embedded in the Goodtrade indicator. Let 's briefly review the characteristics of the indicator and the main strategy for working with it.
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Characteristics of the indicator
Currency pairs: EUR/USD, GBP/USD, USD/JPY, EUR/GBP, EUR/JPY, AUD/USD.
Taymfreym: H1 - M1.
Trading time depends on your strategy.
With currency pairs I suggest to experiment still. It is possible that you will find still good options. The time frame is best before Н1, because the indicator does not work well with large scales.
Settings of the indicator
The settings are mainly related to graphics and convenience. The information displayed by the indicator is as follows:
Forex Strategy with Goodtrade Indicator
Taymfreym: M15, M1.
EMA: period 144.
GoodTrade: standard settings.
For each currency pair we open two graphs М15 and М1. At TF we will М15 the trend and the current structure, and at TF we will confirm the entry М1 and directly open the position. In addition to the indicator, we add an EMA indicator with period 144 to the chart.
1. In the graph М15 define an unfinished 5 wave structure, preferably primary (What does primary mean? The indicator likes to draw five-wave models of one direction one after the other, as shown in the figure above. Therefore, you need, at best, primary. But if the primary in compressed form and the 2nd five-wave of the same direction is drawn, it can be considered).
2. Then you need to track the moment when you have 3 wave circles 1,2,3 with designation and wave 4 is formed.
If the circles are green, work only for purchase and if pink, only for sale. When you have decided on the formation of wave 4, proceed to graph М1.
3. On the chart М1 wait for circle 2 to appear in the same color as on the М15. Now to open a purchase it is necessary that the price is above EMA144, for sale - under EMA144.
4. Stop Loss put 10 pt below or above circle "0."
5. When the circle "5" was formed on the М1 chart, we put the position in the break-even. If wave 5 with corresponding designation has already been formed in graph М15, close position, if not, hold position until circle "5" appears.
Example of purchase transaction
The main problem of Goodtrade 3 indicator is constant redrawing. Ratio of profitable/unprofitable transactions 50/50. But, with input filtering and stop loss/potential profit ratio in mind, you get good results.