Lesson 12 - Comparison of Three Sets of Forex Trend Indicators

Lesson 12 - Comparison of Three Sets of Forex Trend Indicators Introduction In this lesson we will compare and contrast three sets of trend indicators for multiple time frame analysis of the trends of the forex market. As a client of Forexearlywarning.com you can follow our spot forex trading plans with these indicators as well. Forex Trend Indicator Set Number 1 – Free Trend indicators from Forexearlywarning.com Forexearlywarning.com provides a set of free trend indicators which can be set up on a metatrader platform. You can use them to conduct multiple timeframe analysis across 9 timeframes. It is MANDATORY that all Forexearlywarning.com clients set up these indicators to follow the trading plans and trends. Here is a link to the free trend indicators. You can set up the free trend indicators and view the slideshow that accompanies the instructions to get a feel for how they look. These free trend indicators can be set up on any metatrader platform from any forex broker, and they are absolutely free. The metatrader charting systems also have a built in price alarm system which works very well with the Forexearlywarning.com trading plans. Installing the free trend indicators on a metatrader system will provide any forex trader with a basic, functional system for conducting multiple timeframe analysis of trends as well as giving any trader the ability to follow the trading plans from Forexearlywarning.com Forex Trend Indicator Set Number2 – High End Charting Packages from Various Forex Brokers Forexearlywarning provides the free trend indicators to its clients, however if you are currently using a high quality charting system you can set up the free trend indicators on your favorite charting system as well. The free trend indicators are just simple moving averages and in most cases can be set up on any high quality charting system. Just make sure you have at least 9 customizable timeframes and the charting platform you use also has price alarms. All forex brokers provide their clients with some type of charting system, some are really bad and some are fantastic. At Forexearlywarning using Metatrader is not a requirement but Metatrader, although basic, is a forex industry standard. We would never discourage a trader from abandoning their favorite charting platform as long as the free trend indicators can be mimicked. Forex Trend Indicator Set Number3 – Red and Green Light Software Many of the clients of Forexearlywarning.com came from a background of using the red and green light software from Globaltec/MB Trading. The number of Forexearlywarning clients using this software has dwindled due to the cost. But the system is effective. The red and green light software also facilitates multiple timeframe analysis (also referred to as Big Lights Analysis) using a grid array, and currency pairs can be grouped by parallel and inverse group. The red and green lines displayed on the software are regression channels, not moving averages. This is a high cost tool and if you trade through MB Trading/GT also gets paid on every trade through the introducing broker agreement. Monthly cost is $99 per month. The company behind the red and green light software never properly explained to their clients how the software works and the correct way to use it. Although the software is effective and actually a very good analytical tool Forexearlywarning.com has a complete training package on the proper use of the software for any clients who still use this tool and our lessons are quite thorough. Just keep in mind the red and green light software is an excellent analytical tool for trend analysis, but not a lot more. COMPARISON TABLE Grades for Free Trend Indicators Analytical Tool Entry Management Tool Cost Timeframes Price Alarms B C A 9 YES Grades for High End Charting Packages Analytical Tool Entry Management Tool Cost Timeframes Price Alarms B C A ?? ?? Grades for Red and Green Light Software Analytical Tool Entry Management Tool Cost Timeframes Price Alarms A or A+ D or F F 21 NO Notes: High end charting packages with 10-15 timeframes should all be B or A rated but the look and feel varies. Always get charting packages with price alarms. The red and green light software is excellent for market analysis but very cumbersome to look at for trade entries. Metatrader has 9 timeframes and 8 of them can be set up to match the red and green light software. Use any set of the three sets of trend indicators you wish or all three, or two out of three, its completely up to you as to what you are comfortable with. Each trader has to decide what they want. Decide for yourself but have a charting system you like plus one backup system in case one system goes down or malfunctions. END OF LESSON 12

Lesson 12 - Comparison of Three Sets of Forex Trend Indicators

by Forexearlywarning.com on Jan 05, 2011

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Lesson 12 - Comparison of Three Sets of Forex Trend Indicators — Document Transcript