A good exit strategy is essential to trading. Some traders find great entry points for trades and make good profits, but then are wiped out by a market reversal. Some investors may be lucky enough to break even on a trade, while others might lose money. You can trade profitably by using indicators for mt4 – free download. The Exit Indicator works on the assumption that the price will reverse if it moves against the dominant trend for an extended period of time. The indicator can be used to trade any asset. The indicator is suitable for all trading strategies and time frames, including swing and scalping.
How to trade using the indicator
When the Exit Indicator prints a line below the candlestick price, it provides a signal to buy. The indicator line turns aqua during an upward trend. A sell signal is given by an indicator when it appears above the bars. During a downward trend, the indicator will paint a magenta-colored line above the candlestick.
How do you get out of the trading business?
Here is the best part. You can close your trades with profit if you have a good exit strategy.
Exiting from a Buy Trade
When the indicator shows a magenta line, you should exit your long position. This is illustrated by the color change of the indicator line from aqua to magenta. It indicates a possible market reversal. This line can also be used as a stop-loss. Place your stop loss several pips below the indicator.
Exit Sell Signal
When the indicator line turns from magenta into aqua, you should exit your short trade. The change in color indicates that the trend may be changing from a bearish to a bullish one. The indicator allows you to detect an impending trend change at the right time.
The indicator will print an aqua line during a downward trend, as indicated by the green arrow. During an uptrend, the line will appear below the candlestick. A false reversal occurred at some point in the market. The price was testing the indicator line which is a support. The bears, however, were not strong enough for a sustained downtrend.
The indicator will also print a magenta bar during a downward trend. Have you noticed that the color of the indicator line changes after it crosses the candlesticks? As shown by the red line, the magenta line begins to move downwards. This is a sign of a price reversal. The indicator line is used as resistance to continue trading below the line. The price crosses over the indicator line, indicating that a trend change is possible. This is an indication of a possible price reversal.
The conclusion of the article is:
Exit is an indicator that can be used for simple trade management. The indicator’s name implies that it is used to develop a strategy for exiting a position. It is important to lock in profits. When the price crosses the indicator and changes its initial trend, it is time to exit. The indicator is a great tool for traders to determine market trends.