Introduction to the Non-Lag Dot Indicator
Trend direction and trend reversal indications are often some of the most important components of a technical analysis. This allows traders to identify which direction to trade and when to open a trade. The Non-Lag Dot Indicator is a technical analysis tool developed to help traders identify trend direction and trend reversals.
What is the Non-Lag Dot Indicator?
The Non-Lag Dot Indicator is a trend following technical indicator which indicates trend direction by plotting a series of dots on the price chart. These dots track the movements of price action quite closely. The dots this indicator plots also changes color to indicate the direction of the trend. It plots a green dot to indicate a bullish trend direction or bias, and magenta dots to indicate a bearish trend direction or bias.
How the Non-Lag Dot Indicator Works?
The Non-Lag Dot Indicator is an indicator which is derived from an underlying moving average indicator. It simply tracks the points of the moving average and plots dots on these points. It also compares the current point with its preceding point. If the current point has a higher value compared to the previous point, the indicator will plot a green dot. If the value of the current point is lower than that of the previous point, then it would plot a magenta dot.
How to use the Non-Lag Dot Indicator for MT5
This indicator has several option fields within its indicator settings.
“Applied price” refers to the price point on a price bar which the indicator uses as the price data for its computation.
“Smoothing method” refers to the moving average calculation method which the indicator would use for its underlying moving average line.
“Indicator calculation period” refers to the number of price bars or periods the indicator would use for its calculation.
“Horizontal shift of the indicator in bars” allow users to shift the dots forward or back.
This indicator can be used as a trend direction indicator based on the color of the dots. Traders can then decide to trade only in the trend direction indicated by the dots.
Related to this, traders can use this indicator as a trend reversal indicator wherein traders would use the changing of the color of the dots as a trend reversal signal. This method is best done however in confluence with other technical analysis indications. The examples below only show the signals without the confluences.
Buy Trade Setup
When to Enter?
Open a buy order as soon as the Non-Lag Dots change to green. Set the stop loss on the support below the entry candle.
When to Exit?
Close the trade as soon as the Non-Lag Dots change to magenta.
Buy Trade Setup
When to Enter?
Open a sell order as soon as the Non-Lag Dots change to magenta. Set the stop loss on the resistance above the entry candle.
When to Exit?
Close the trade as soon as the Non-Lag Dots change to green.
Conclusion
The Non-Lag Dots Indicator can be a useful trend reversal signal indicator. However, as a standalone signal indicator, it would not always be very accurate. As such, it is best to use this indicator in confluence with other technical indications preferably developing on a higher timeframe. Traders could then use this indicator as an entry signal while opening the trade on a lower timeframe as a trade entry trigger.
This is a Metatrader 5 (MT5) indicator and the essence of this technical indicator is to transform the accumulated history data. This MT5 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 MT5 Strategies >> Claim Your $50 Bonus Here << Click here below to download:MT5 Indicators – Download Instructions
Recommended Forex MetaTrader 5 Trading Platforms
XM Market
How to install MT5 Indicator to your MetaTrader 5 Chart?
How to remove MT5 Indicator from your Metatrader 5 Chart?
(Free Download)
