At times, significant momentum movements at the start of the week would dictate the direction of the market for several days.
The Weekly Open Horizontal Target Lines Indicator is a tool which traders can use to trade this type of trading opportunities.
The Weekly Open Horizontal Target Lines Indicator is a technical indicator which marks the opening price for the week and the potential price levels that the market may reach within the week.
This indicator plots three lines. It plots the middle line, which indicates the opening price, a green line above the middle line, which represents the target price on a buy trade, and a red line below the middle line, which represents the target price on a sell trade.
This Weekly Open Horizontal Target Lines Indicator has an algorithm which automatically marks the opening price for the week as the middle line and extends it for the whole week. It then plots the two target lines above and below the middle line based on a specified distance in points. The point value used to measure the distance is selected by the trader. However, this is preset at a distance of 50 pips or 500 points.
The Weekly Open Horizontal Target Lines Indicator has a few modifiable inputs within the indicator settings.
“Weekly Open”, “TP Long Target”, and “TP Short Target” modifies the color that the indicator would use to plot the horizontal lines.
“TP Target” modifies the distance from the Weekly Open in which the upper and lower target lines are placed. This is the most important variable that the trader could modify.
“Line Style” modifies the type of line used, while “Line Width” modifies the thickness of the line the indicator plots.
When to Enter?
Open a buy order if price action forms a bullish momentum during the starting hours of the week.
When to Exit?
Set the take profit target at the green line above the entry candle and allow price to reach the target.
Open a sell order if price action forms a bearish momentum during the starting hours of the week.
Set the take profit target at the red line below the entry candle and allow price to reach the target.
The Weekly Open Horizontal Target Line Indicator is not completely accurate. However, traders using this indicator do not have to be since the targets can be placed far enough to have extremely high risk reward ratios. Price may or may not reach the targets, but the trades that reach the target should generally have larger profits compared to the losses. Still, traders should avoid trading false signals too often as such losses may accumulate and nullify the profits of the winning trades.
Traders should also modify and adjust the target lines depending on the currency pair and market condition as this would often vary.
MT4 Indicators – Download Instructions
Weekly Open Horizontal Target Lines Indicator for MT4 is a Metatrader 4 (MT4) indicator and the essence of this technical indicator is to transform the accumulated history data.
Weekly Open Horizontal Target Lines Indicator for MT4 provides for an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.
Based on this information, traders can assume further price movement and adjust their strategy accordingly. Click here for MT4 Strategies
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