Introduction to the AFL Winner Indicator
The AFL Winner Indicator was developed using the AmiBroker Formula Language, which is why it called the “AFL” Winner Indicator.
This indicator was developed to help traders objectively identify the direction of the short-term momentum, price swings, as well as the potential mean reversals coming from an overbought or oversold market, which may be observed on a market’s price swing.
What is the AFL Winner Indicator?
The AFL Winner Indicator is a momentum indicator which presents the direction of the market as an oscillator type of indicator.
This indicator plots bars that oscillate within the range of zero to 100. It plots lime bars to indicate a bullish momentum direction and red bars to indicate a bearish momentum direction.
The bars that this indicator plots have characteristically smooth oscillations yet is also very responsive to changes in the direction of price due to price swings.
This indicator can be used as a mean reversal signal indicator based on bars reversing from levels touching zero and 100. The bars vanish as it drops below zero or exceeds above 100 indicating an oversold or overbought market. These scenarios are prime conditions for potential reversals coming from oversold or overbought markets.
How the AFL Winner Indicator Works?
This indicator’s algorithm uses an underlying Linear Weighted Moving Average (LWMA) to calculate for the oscillations of its bars. It has a complex algorithm which calculates and compares price movements relative to the average historical price movement. The indicator then plots lime bars whenever the value of the bars is rising, and red bars whenever the value of the bars is dropping.
How to use the AFL Winner Indicator for MT4
The AFL Winner Indicator has a few options within its indicator settings which users can modify.
“PERIOD” refers to the number of periods the indicator uses to calculate for its underlying LWMA line, which is the basis for it other calculations.
“AVERAGE” allows users to adjust the average threshold which modifies the characteristics of the indicator’s oscillations.
Buy Trade Setup
When to Enter?
Allow the bars to drop to zero and vanish. Open a buy order as soon as the indicator plots a lime bar touching zero in confluence with other bullish reversal signals.
When to Exit?
Allow the bars to touch 100 and close the trade as soon as price action shows signs of a possible bearish reversal.
Sell Trade Setup
When to Enter?
Allow the bars to breach above 100 and vanish. Open a sell order as soon as the indicator plots a red bar touching 100 in confluence with other bearish reversal signals.
When to Exit?
Allow the bars to touch zero and close the trade as soon as price action shows signs of a possible bullish reversal.
Conclusion
This indicator can be a very effective momentum reversal entry signal. However, it is even more effective if the reversal signals develop coming from an oversold or overbought price level. This indicator is also very effective when used in confluence with the long-term trend direction.
This is a Metatrader 4 (MT4) indicator and the essence of this technical indicator is to transform the accumulated history data. This MT4 Indicator provides for an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye. Based on this information, traders can assume further price movement and adjust their strategy accordingly. Click here for MT4 Strategies >> Claim Your $50 Bonus Here << Click here below to download:MT4 Indicators – Download Instructions
Recommended Forex MetaTrader 4 Trading Platform
How to install MT4 Indicator?
How to remove MT4 Indicator from your Metatrader Chart?
(Free Download)
