The Variance Index indicator was created using the Super MT4 Trend Following strategy to provide an immediate trend signal for potential price reversals. The indicator acts as a momentum indicator to identify market trends. It also signals the continuation pattern of the trend, which can help you predict trend-based buy/sell opportunities.
The Variance Index indicator is compatible with all MetaTrader 4 timeframes, allowing you to evaluate both intraday and day trading opportunities. This guide will teach you how to use the Disparity Index Indicator for MetaTrader 4 to trade stocks and Forex on an ongoing basis.
How to use the Disparity Index MT4 indicator to help you make the best buying and selling decisions
This indicator is a flexible tool for stock and forex traders interested in trend following. It detects changes in market momentum to predict future price movements. It also plots trend continuation signals to help you predict potential retracement trading opportunities.
If the indicator crosses the zero line, the market trend will be bullish. In the opposite direction, a market trend that is bearish will be indicated by an indicator value below zero. In an uptrending market, the value will remain positive. When the entire market is in a downtrend, the indicator line will swing down.
The indicator plots the bullish trend signal in the example above. Whenever the indicator value rises above the zero level, the price will move northward.
The Variance Index indicator is the best choice for MT4’s moving average trading strategy. It is highly sensitive to changes in past price behavior and produces real-time trends for major market movements. Professional traders may consider adding the variance index to their trading strategies. They can use it to identify real-time market trends, as well as potential price movements in the current market momentum.