HomeForex MT4 IndicatorsArrows - Curves Indicator for MT4

Arrows – Curves Indicator for MT4

Introduction to the Arrows – Curves Indicator

The Arrows – Curves Indicator is a momentum indicator which identifies momentum breakout signals based on price channels. It is based on the concept of identifying momentum breakouts using the breakout of price from a price channel as the trade signal.

What is the Arrows – Curves Indicator?

This indicator plots two green lines which envelope most of the movements of price action. These two lines create a channel like structure wrapping price action. It also plots arrows indicating momentum breakouts pointing the direction of the breakout. It plots blue arrows pointing up indicating a bullish momentum breakout, and red arrows pointing down indicating a bearish momentum breakout.

Arrows - Curves Indicator for MT4

How the Arrows – Curves Indicator Works?

The Arrows – Curves Indicator uses a complex algorithm which plots the two green lines that forms the channel. This indicator identifies momentum breakouts based on candles closing outside of the channel. It then plots a blue arrow whenever a bullish candle closes above the upper green line, and a red arrow whenever a bearish candle closes below the lower green line.

How to use the Arrows – Curves Indicator for MT4

The Arrows Curves Indicator has three variables which users can modify to change the characteristics of the channel, and effectively its momentum signals.

The “SSP” variable adjusts the number of periods the indicator uses to calculate its channel. The higher the number, the wider the channel tends to become.

“CountBars” refers to the number of historical bars the indicator would calculate on.

“SkyCh” adjusts the range of the channel. The higher the variable input, the tighter the channel becomes.

How the Arrows - Curves Indicator Works

This indicator can be used as a momentum breakout indicator, which is what its signal arrows are for. Traders can use the signal arrows as a momentum breakout confirmation and open trades based on these signals. However, this trade entry is best done in confluence with other technical analysis indications such as trend direction or support and resistance reversals.

Buy Trade Setup

When to Enter?

Open a buy order as soon as a bullish candle closes strongly above the upper green line and a blue arrow pointing up appears. Set the stop loss on the support below the entry candle.

When to Exit?

Close the trade as soon as price action shows signs of a possible bearish reversal.

How to use the Arrows - Curves Indicator for MT4 - Buy Trade

Sell Trade Setup

When to Enter?

Open a sell order as soon as a bearish candle closes strongly below the lower green line and a red arrow pointing down appears. Set the stop loss on the resistance above the entry candle.

When to Exit?

Close the trade as soon as price action shows signs of a possible bullish reversal.

How to use the Arrows - Curves Indicator for MT4 - Sell Trade

Conclusion

This method of a momentum breakout entry is used by many traders, although many would use various channel or band type of indicators. However, since most channel indicators plot wide channels, the signals can sometimes be a little delayed. This indicator is preset to plot a relatively tight channel which makes its signals timelier.

There are some traders who would also wait for the second candle to breach the breakout signal candle for additional confirmation. This is a brilliant technique as it would confirm the momentum continuation.

All in all, this indicator is an excellent implementation of a momentum breakout trade signal which is used by many traders.

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Arrows – Curves Indicator for MT4

Tim Morris
Tim Morrishttps://www.forexmt4indicators.com/
Tim Morris is a work from home dad, home-based forex trader, writer and blogger by passion. He likes to research and share the latest forex trading strategies and forex indicators on ForexMT4Indicators.com. His passion is to let everyone to be able to learn and download different types of forex trading strategies and mt4/mt5 indicators at ForexMT4Indicators.com
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