Introduction to the Silver Trend Signal Alert Indicator
Strong momentum going against a prior short-term trend direction is usually indicative of a reversal. Price action traders who are familiar with this often use this as a trade entry signal. However, most new traders do not have this skill.
The Silver Trend Signal Alert indicator is a tool which can help traders identify possible momentum reversal entry signals.
What is the Silver Trend Signal Alert Indicator?
The Silver Trend Signal Alert indicator is a custom technical indicator which provides reversal signals.
It is a simple technical indicator which plots dots to indicate a possible reversal. It plots lime dots to indicate a bullish reversal, and red dots to indicate a bearish reversal.
This indicator also provides alerts whenever a new signal develops.
How the Silver Trend Signal Alert Indicator Works?
The Silver Trend Signal Alert indicator has a complex algorithm within its settings which it uses to detect momentum reversals. It uses the average range of price, the low and high of price, and the close of price on its algorithm in order to detect uptrends and downtrends.
This indicator also incorporates spreads, as well as bid and ask prices within its signals, which it also includes in its signal alerts and push notification E-mails.
How to use the Silver Trend Signal Alert Indicator for MT5
This indicator has several variables which can be modified within its settings.
However, probably the most important variable which traders can tweak is the “SSP” variable. This alters the sensitivity of the indicator. The higher the number, the lower the sensitivity, yet the more reliable the signals. The lower the number, the higher the sensitivity, but the signals also become less reliable.
This indicator is a reversal signal indicator and it should be used as such. However, it is best to use this indicator in confluence with strong momentum candles. Traders should also qualify the signals based whether there is a viable price target which is reasonable enough for the market to reach.
Buy Trade Setup
When to Enter?
Identify a trade signal which is in confluence with a bullish momentum price action. Qualify the trade if the risk reward ratio is positive. Open the trade if these conditions are met. Set the stop loss on the support below the entry candle.
When to Exit?
Set the take profit target on the next major resistance level.
Sell Trade Setup
When to Enter?
Identify a trade signal which is in confluence with a bearish momentum price action. Qualify the trade if the risk reward ratio is positive. Open the trade if these conditions are met. Set the stop loss on the resistance above the entry candle.
When to Exit?
Set the take profit target on the next major support level.
Conclusion
The Silver Trend Signal Alert indicator can be a very reliable reversal signal indicator especially when traded in confluence with momentum. However, it does tend to produce lagging signals. This causes the trades to have a lower risk reward ratio due to the possible late entries. As such, it is best to always qualify trades based on the risk reward ratio in order to have a positive profit factor.
Recommended MT5 Broker
XM Market
- Free $50 To Start Trading Instantly! (Withdrawable Profit)
- Deposit Bonus up to $5,000
- Unlimited Loyalty Program
- Award Winning Forex Broker
- Additional Exclusive Bonuses Throughout The Year
>> Claim Your $50 Bonus Here <<
(Free MT5 Indicators Download)
Click here below to download: