Futuro FX forex indicator is based on the correlation. It is programmed to project the future market price action based on the history of the correlated mt4 currency pairs. It is designed to work on any chart time frame starting from the least, which is mt4 5min to the maximum your platform can offer.
The indicator acts by correlating a certain number of bars on the recent mt4 chart to a past number of chart bars, making a sequence whose length is equal to the number of bars used in the correlation. This correlation is a number between – 100 and 100. The – 100 is the max
inverse correlation, while the 100 is the ultimate positive correlation.
The Futuro FX Indicator is set only to measure the positive correlation by default. However, the trader can always put it so that it can measure both the negative and the positive correction if they so wish.
Fig.1. Futuro FX Indicator explained.
Futuro FX Indicator displays some information in the top left corner in a blue text box. This information is arranged down. From the top, there is the indicator name, “FuturoFX v2.00”, then there is a website link, and then the current open time, which is the time the last bar that is displayed on the chart was opened. From there, we go to the number of analyzed candles, which is put out of the max_history set. The next is the number of correlations performed (number of OHB in the analyzed history) and the length of each chart history block between square brackets. The following information is the number of the correlation matches above the threshold, which is set at 75.0% by default. The forex indicator also gives the best correlation that was found. The potential pips show the profit in terms of pips the trader is set to make when they open a sell or a long position. The indicator also gives the forex trader the score of the confidence level of the correlation calculations. This helps the forex trader to decide whether to trade or not.
How to place an order using Futuro FX Indicator
First of all, the trader has to consider some important notes about when to place orders using this indicator. These notes include:
- The trader should open any trade only when the confidence level is above 50%.
- If the potential (pips) shows that the length is equal to the short or the long and the short has a difference of fewer than ten pips, the trader should avoid trading.
- The matches in the correlation should also be above 50% for the trader to trade.
Futuro FX Indicator Placing orders: the trader should place an order depending on the higher potential (pips). If the indicator is predicting that the long will give a higher profit in terms of pips than the short positions, then the trader should place a long position and vice versa. This can be done by placing orders in the direction in which the yellow bars (best projection) are formed.
When trading, the trader should always place stops. The stops are placed as follows: the take profit is placed at the number of pips shown on the potential pips and the stop loss at the number of pips of the opposite trade that would have been placed.
Fig.2. Futuro FX Indicator Placing a sell order using the FuturoFX indicator.
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Futuro FX Forex Indicator Free Download