What Is The Gioteen Indicator on MT4?
The Gioteen Indicator on MT4 is for the type of day trader who executes just a few trades per day, but these are high probability trades. They value quality over quantity.
Which would you prefer: high probability transactions executed just a few times per day or slightly lower probability trades executed numerous times per day?
There is no absolute correct or incorrect answer to this question. It all comes down to your trading style. If you are the sort of trader who can wait for a setup, you may take that one high probability trade.
On the flip side, if you are the sort of trader who seeks speed and activity, you may take as many transactions as possible.
Let's see how the Gioteen Indicator on MT4 can make your transactions better!
What is The Gioteen Indicator on MT4?
The trades this indicator executes are based off of retraces that only sometimes occur. These trades, however, are where momentum trend trading and trend reversal collide. These are mid-term trend reversals that remain consistent with the long-term trend.
The Gioteen Indicator on MT4 is a bespoke oscillating indicator that indicates normalized pricing. It is a basic oscillating indicator that is unbounded and oscillates with a zero midline. This enables the indicator to imitate the movement of price action accurately.
You might be able to determine the trend direction of the Gioteen Norm by whether its present level is positive or negative.
If the price moved from the negative area to positive territory, it would be regarded as the beginning of a bullish trend.
On the other hand, if the price fell from the positive region, it might signal the start of a negative trend.
How Does The Signal Line Indicator Work?
The Signal Line indicator is yet another uncomplicated method for determining the direction of a trend.
It is calculated using a modified moving average that has been averaged out in some manner to make it more smooth.
There are many different applications for moving averages as trend indicators that may be carried out.
When you are trying to determine the direction of the trend, some individuals look at where the price is in relation to the moving average. Others depend on the aggregation of several moving averages or moving averages of multiple periods.
Determining the slope of a trend is an additional straightforward way of analyzing trends based on indicators.
If the moving average is heading in an upward direction, this indicates that the trend is bullish.
Conversely, the trend is considered to be bearish when the moving average is moving in a downward direction.
The slope of the line is what the Signal Line indicator utilizes to determine the direction of the trend. If it is going in an upward direction, a lime line will start to be painted. On the other hand, if it starts to tilt downhill, it changes color and turns red.
The Gioteen Indicator Trading Strategy
This strategy is a deep retracement method that follows the long-term trend and makes use of entry signals based on the convergence of the Gioteen Indicator on MT4 and the Signal Line indicators. This technique follows the long-term trend.
To make a more correct assessment of the long-term trend, we will use the 200-period Exponential Moving Average (EMA), a well-known predictor of long-term trends.
The 200-day exponential moving average (EMA) usually is relatively flat because of the amount of time it covers (200 days).
Although it is possible in theory to determine the direction of a trend based on the slope of the 200-period exponential moving average (EMA), we will instead use the location of price and the Signal Line in relation to the 200-period EMA as a predictor of trend direction.
In addition, we will only examine trading circumstances that are in line with the overall trend over the long run.
The entry will be determined by whether or not the color of the Signal Line indicator shifts and whether or not the line of the Gioteen Indicator on MT4 crosses over the midline.
If these signs are consistent with the trend over the long run, we have the makings of a trade scenario.
- Currency Pairs:
Minor and Major pairs only.
The Gioteen Indicator: Buy Trade Setup
- Price should be above the 200 EMA, suggesting a long-term bullish trend.
- The Signal Line should be higher than the 200 EMA.
- The line of the Gioteen indicator on MT4 should cross above zero, suggesting that the bullish trend is likely to resume.
- The Signal Line should become lime, suggesting a shift to a bullish trend.
- At the intersection of the aforementioned circumstances, place a buying order.
Best Stop Loss
- Set the stop loss at the low of the previous two candles.
- Close the transaction as soon as the Signal Line turns red, signaling that the bullish trend has ended.
The Gioteen Indicator: Sell Trade Setup
- Price should be below the 200 EMA, suggesting a long-term negative trend.
- The Signal Line should be lower than the 200 EMA.
- The line of the Gioteen indicator on MT4 should cross below zero, suggesting that the negative trend is likely to resume.
- The Signal Line should become red, signaling a shift to a bearish trend.
- When the requirements above are met, place a sell order.
- Place your stop loss at the highest high of the previous two candles.
- Close the position as soon as the Signal Line turns lime, signaling the end of the bearish trend.
This is a high probability approach with transactions that only seldom occurs. This is due to the Gioteen indicator's line not typically retracing deep enough to be on the other side of the midline while being in accord with the long-term trend.
When trade settings arise, they are generally high probability trade setups with big potential rewards. Returns may be as high as 4:1 or even higher.
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