Forex trading has enjoyed a tremendous growth over the last few years due to the financial slump. It is almost a daily occurrence that someone mentions the slide in the USD due to the never ending printing of the currency to stabilize the US economy. Many traders have made a killing shorting the US Dollar against other currencies.
Forex trading is widely known to be volatile and unstable at times, but investors have been flocking to the 24 hour 6 day a week market because it is heavily leveraged, sometimes up to 400:1, and due to the fact that you don't need much capital to start trading.
MMindicator.com, a leader in technical analysis programming, has developed a new trading indicator to assist Forex traders be more profitable and help them time the volatile Forex market with higher accuracy. Their system uses cutting edge technology that can inform the trader when the currency pair is about to shift directions (ie: reversal).
Not to get too technical, their indicator is a two tiered system, one indicator shows the trader where the price will most likely reverse and start heading in the opposite direction, where one indicator is a confirming trend indicator that the trader can use to confirm their entry points as well as show them where to place their stop orders.
We got a chance to preview their Forex Indicator first hand. We installed it on our MT4 platform. (It is available for eSignal and Ninjatrader as well). The installation process was fairly easy, just like adding any Add-on indicator for MT4. We set it up to work on a 5 minute chart for on the EURO / USD currency pair. After reading the instructions, we were ready to test the system with a live trade. (Disclosure: we opened a micro account to test this system with an opening balance of $100 USD). The system shows where to enter the trade... we waited patiently. Once the EUR/USD hit our level, we entered a “BUY” position within pips of the Indicators' level. Within 3 minutes we saw the confirmation signal, and we entered our stop price 25 pips below our entry.
Ten minutes after our entry order, we noticed volume on the “buy” side pick up. The trade was going our way. The point I found interesting was that the exit levels were displayed before I even entered the position. I saw the profit levels in advance, which was great. Many traders tend to exit their positions at the wrong time. Once the currency hit our profit target, we exited the trade, and immediately entered a short position with a stop 30 pips above. This was getting fun.
After 3 hours of trading using their custom indicator, we turned our $100 micro account (with 400:1 leverage) into $165. Yes, a 65% return in 3 hours... Keep in mind we used 400:1 leverage, and a loss could of easily put us 65% in the red.
Overall, this Forex indicator is a great tool for Forex traders looking to get an edge in this volatile and highly leveraged market.
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