DynoTrading
The video discusses the best forex indicator, a volume-based indicator that identifies starting points. It also emphasizes the importance of indices over traditional currency pairs in forex trading. The average daily range on indices is 10 times that of currency pairs. The best forex indicator used in the video is a clean, price action-based volume indicator that changes color based on prevailing market direction. The indicator helped identify trending signals on the US 30, which blew away traditional currency pairs in daily average range. The video also provides mathematical formulas for converting points into pips and highlights the potential of 800 pips in just one downtrend.
Mastering Forex Trading with the Best Indicator You’ve Never Heard Of
Introduction
Forex is an exciting and often challenging market to trade in. Many traders continuously strive to find that one indicator that can give them an edge to make a consistent profit. In this article, we will be discussing the best Forex indicator you’ve probably never heard of that can help identify the starting points of trends. By the end of this article, you will no longer be a Forex beginner, rather, a Forex master.
Why the Forex Indices are Important?
The currency pairs we are accustomed to are not the only options available in forex. The forex indices such as the US 30, the SPX 500, and the NAS 100 blow away the traditional currency pairs in terms of average daily range (ADR). The ADR on these 4x indices is ten times the average daily range on currencies. The average daily range is the most important data point that you need to be mindful of in forex. To put this into perspective, let us consider two symbols, GBP and US 30. Suppose you capture just half the average daily range on GBP, which is about 70 pips a day. In contrast, the US 30 typically averages just over 700 pips a day. Hence, trading the US 30 and other forex indices with higher ADR is an obvious choice.
Introducing the Best Forex Indicator
The Forex Volume Indicator is a powerful trading tool that can help identify the starting points of trends. It is a volume-based indicator that changes color based on the prevailing market direction. The volume indicator is a clean price action-based forex volume indicator, making it the best forex indicator out there. The only job of this trading indicator is to change color to inform the trader whenever the trend changes, making it easy to make decisions.
How to Identify Trend Using the Forex Volume Indicator?
One of the best ways to utilize the Forex Volume Indicator is by using it to isolate the trends. For instance, if the volume indicator turns red, that’s a short signal, indicating a downtrend. If the indicator turns green, that’s a long signal, indicating an uptrend. The length of the trend can be calculated by comparing the low of the downtrend with the starting point and high of the uptrend with its starting point.
Calculating Points and Pips
The Forex Volume Indicator is used to calculate the points on the US 30. Every one point on the US 30 is worth ten pips. For instance, an 80 point downtrend and 110 point uptrend on the US 30 are equivalent to 800 and 1,100 pips, respectively. Pips are used interchangeably with points in forex. It is important to note that the US 30 tracks the Dow and is essentially the forex version of the Dow. You can trade Dow futures, Dow stocks, and now Dow forex.
Conclusion
The Forex Volume Indicator is a powerful trading tool that can help identify the starting points of trends. It is a clean price action-based indicator that changes color based on the prevailing market direction, making it easy to identify trend changes. Trading forex indices with higher ADR, such as the US 30, is often a better choice than traditional forex currency pairs. Calculating points and pips is a fundamental part of trading forex and utilizing this indicator to do so can help increase profitability. With this knowledge, you can now confidently master forex trading.
