CatFX50 Indicator is an especially parameterized moving average, used to measure the balance between bullish and bearish strength of the market trends.
The demonstration of the indicator looks quite simple but it is a standalone trading tool and has a prospect of signaling the entries with at least 2X profit targets. Besides, its simplicity of use attracts newbie traders too.
This particular indicator can be applied to trade all kinds of forex currency pairs available in the market. Furthermore, it suits all sorts of timeframe charts within the forex MT4 trading platform.
CatFX50 Indicator Overview
Download the Indicator and install it on your MT4 terminal. Once you’re done, your chart will appear like the following image:
Explanation
CatFX50 Indicator is a slowish moving average built based on the StepMA method. It lags a little but stresses more on better confirmation. For defining the market trends, you’ll need to observe the intention of price movements like it wants to stay above or below the indicator slope. Price is greater than CatFX50 value means the trend is bullish.
On the other hand, the price holding its position below the indicator level represents the bearish trend of the market. An entry can only be made after a trend is confirmed. For exits, you may target at least 2X profits compared to your budgeted loss against each entry.
CatFX50 Indicator: Buy Conditions
- Price remains greater than the indicator value
- A bullish candle forms right above the current CatFX50 level
- A buy can be triggered once the above conditions are met
- Set stop loss below the low of the current indicator value
- Exit long/take profit whenever your trade hits 2X profit compared to your stop loss amount
Also Read: Exness Review
CatFX50 Indicator: Sell Conditions
- Price remains lesser than the indicator value
- A bearish candle forms right below the current CatFX50 level
- A sell can be triggered once the above conditions are met
- Set stop loss above the high of the current indicator value
- Exit short/take profit whenever your trade hits 2X profit compared to your stop loss amount
