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Custom Indicator (CI) is an indicator which made based on the development of existing indicators, also the new ones that have not been tested in the long term. Although it has never been tested in the long run, it does not mean this indicator is not effective in reading the price movements of a currency pair. In fact, in some cases, CI more accurately predicts price movements compared to indicators that are already available on MT4.
CI itself was created for various reasons. Some made new indicators because the existing indicators were considered less able to predict price movements. There are also those who make new indicators to adjust their trading strategy and trading systems. There are also those who make new indicators because the existing indicators are considered outdated and must be updated. With these various reasons, it’s no wonder everyone can make their own indicators.
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With a simple coding and programming language, anyone can create new indicators that are in accordance with their wishes. The program language used is usually MQL4 which can later be inserted into MT4. MT4 itself has one place that CI can be inserted, so this is one of the advantages of the MT4 platform. Actually, whatever using general indicators and CI, trading system that are used must remain simple but profitable. Do not let trading system using CI become even more complicated and making confuse traders themselves.
The applications of each are different. There is only showing the movement, there is also leading or lagging of the movement of currency pairs. For example, the CI Signal Bar application below contains information on price movements based on MACD, TR and MA, and also contains information about the range of daily movements, the highest and lowest values and also the spread of a forex currency pair.
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Signal Bar Custom Indicator Display
From the example above, we can see a lot of information provided by this CI. By looking at the example above, the tendency of options for entry trading should be to buy, either in any time frames. This can be seen from the columns above all green which indicate an upside potential. Meanwhile, the movement looks still quiet with the highest and lowest points still within a few pips, well below the average movement that can be achieved. This opportunity shows that this currency pair has the potential to rise to daily moving average.
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While for other indicators, for example below is indicator that show the supply and demand areas of a currency pair. The CI, called the Shved Supply and Demand, is suitable for traders who want to use the supply and demand methods or who find the support and resistance methods too difficult. With the help of this indicator, we can clearly see the boundaries and areas which are classified as supply and we have an opportunity to sell at that level. And also where are the only areas of demand, which means we can do an entry buy in that area. As well as by placing a stop loss at the boundary of the visible area. For more details, we can see the following picture.
The Display of Shved Supply and Demand Indicator
From the figure, in addition to information on areas and areas of supply and demand, this indicator also provides information on the strength of supply and demand areas. There are writings of Weak Res and Untested Res which show that the strength of the supply area is weak and some have never been tested. While for the demand area, it can be seen in the picture that there is a green column which is a sign of the demand area.
The two examples above show that CI can help provide a better analysis for trading. There is no compulsion to use this indicator and it does not have to be downloaded, if it is not needed. CI is one way to look for a better analysis, especially on things that cannot be covered by ordinary indicators.
Things to mind
The indicator is still an indicator, which can be a pointer in trading. We cannot use 100% indicator as a trading reference, but enough as an analysis enhancer. The initial concept of making CI is to cover up the shortcomings of existing indicators, not to make perfect existing indicators.
There are many that offer CI on the internet, some even paid. It is better to look carefully and choose carefully before you take because the CI that has been paid is not in accordance with trading system and trading systems that we have. Free CI is not necessarily bad and vice versa.
Simple trading system using CI but profit can be realize in if the analysis and strategy are good. This forex trading system can also generate consistent profits if done according to the rules of the trading that we have. Do not easily believe the lure that CI can make percentage profit, because nothing is certain.