WEALTHCLUB_FX
A smooth step indicator can confirm trade signals and give good results when used with an entry indicator. The default settings can be misleading but can be tweaked for better results. The indicator is useful for scalping in smaller time frames and can be used for various markets. By changing some settings, the indicator can become a zero-cross indicator for buy and sell signals. It is important to back test and find the settings that work best for individual traders.
The Smooth Step Indicator: A Magical Indicator for Traders
Introduction
Indicators are essential tools for traders, helping them make sound investment decisions. However, not all indicators are created equal. Some are misleaders, while others need to be tweaked to function in the current market. Traders must choose the right indicators based on their trading style and experience.
In this article, we will take a closer look at one indicator that has become popular in recent times: the Smooth Step Indicator. We will examine what it is, how it works, and how it can be used to make profitable trades.
What is the Smooth Step Indicator?
The Smooth Step Indicator is a confirmation indicator that is used to confirm the signals provided by entry indicators. In other words, it helps traders confirm whether the entry signal received is accurate before entering a trade. The indicator is available on a variety of trading platforms, including MetaTrader 4 (MT4) and TradingView.
The Smooth Step Indicator is a trending tool that helps traders identify market trends by analyzing past data. It consists of a blue line and a yellow line, which move up or down depending on whether the market is in an uptrend or a downtrend. When the blue line is above the yellow line, it signifies an uptrend, and when the blue line is below the yellow line, it signifies a downtrend.
Using the Smooth Step Indicator in Trading
The Smooth Step Indicator is a versatile tool that can be used in various trading situations. As mentioned earlier, it is primarily used as a confirmation indicator to confirm entry signals received from other indicators. Traders who rely solely on entry indicators often find that their trades are not always profitable. This is where the Smooth Step Indicator comes in, providing a high degree of certainty before entering trades.
To use the Smooth Step Indicator effectively, traders can pair it with an entry indicator of their choosing. In the video, the Ichimoku Kinko Hyo indicator is used as an entry indicator. This indicator provides clear signals that can be easily understood by traders. Once the Ichimoku Kinko Hyo indicator provides an entry signal, traders can confirm it with the Smooth Step Indicator to increase their confidence in the trade.
Changing the Settings of the Smooth Step Indicator
By default, the Smooth Step Indicator may not provide the best results. Therefore, traders need to experiment with different settings to find the ones that work best for them. In the video, After downloading the Smooth Step Indicator, the trader modifies its settings to improve its performance.
First, the trader modifies the colors of the indicator. The blue and yellow lines are changed to Aqua to create a single line. Then, the trader heads to the levels section and sets a zero cross, with the yellow line at 0.5. Finally, the trader thickens the yellow line to create a more visible signal.
Once these settings are changed, traders can use the Smooth Step Indicator to confirm entry signals and identify potential trades.
Smooth Step Indicator in Action
In the video, the trader demonstrates how to use the Smooth Step Indicator on the EUR/USD pair. By using the Ichimoku Kinko Hyo indicator as an entry signal and the Smooth Step Indicator as a confirmation tool, the trader identifies profitable trades on a one-minute time frame.
The trader also shows how the Smooth Step Indicator can be used on higher time frames, such as the daily and hourly charts. Regardless of the time frame, the Smooth Step Indicator can help traders confirm their entry signals and improve the accuracy of their trades.
Conclusion
The trading world is filled with various indicators, some useful and others not so much. The Smooth Step Indicator is a confirmation tool that can help traders identify potential entry opportunities with more certainty. By using it in conjunction with an entry signal, traders can increase their confidence and minimize their chances of making losing trades.
Remember that each trader has their own preferred method of using indicators, so tweak the Smooth Step Indicator’s settings, combine it with your favorite entry indicator, and see how it performs for you. With the right approach, this indicator can help traders achieve their financial goals.
