Class: hybrid – trend oscillator
Trading type: scalping
Time frame: 5 min
Purpose: detection of optimal buy entry points
Level of aggressiveness: high
Indicator «Gold24fx» was developed for scalping trading in Gold market. It can be used to define optimal buy entry points when the sentiments prevail.
Indicator «Gold24fx» is based on unique author algorithm. It allows to provide quantitative assessments of current market sentiments as well as to visualize them. Also «Gold24fx» can detect divergences between current market price and fair value of the Gold for a specific moment of time. Local undervaluation of the Gold is a reason to generate a buy signal in situation when market is controlled by the bulls.
Thus Indicator «Gold24fx» provides sufficient data to the trader for the successful trading in the Gold market.
Structure of the indicator
Indicator consists of the following elements:
- Market sentiments curve – is presented with 3 color gammas: blue color ( sentiments are dominating), red color ( sentiments are dominating), green color (flat is present in the market),
- Red cross on the curve – a signal in favor of contraindications for buy trades. Can be related with sentiments in the market or local overbought of the Gold ;
- Green triangle on the curve – is a buy signal for short term Gold trades. It appears when the market sentiments are prevail and asset is temporarily undervalued.
Rules of trading
Rules of trading are very simple. Blue color of the curve evidences in favor of market sentiments. When the buy signal appears (green triangle on the curve) long position in Gold should be opened.