The basic postulate of technical analysis says that the changes in the current market are caused by the changes that have happened earlier. If so, you can extrapolate the experience to the current situation and find the best market entry and exit points for making the most profitable transactions.
For example, what happens after the opening of the world trading floors? Are there any patterns? If there is, which ones? The Ku Klux Indicator is designed to help us answer these questions.
Currency pairs: EUR\USD, GBP\USD, AUD\USD USD\CHF, EUR\JPY.
Timeframe: no higher than Н4.
Installation and adjustment
Install the indicator by the algorithm described in the trading terminal.
The main settings of the indicator are the following:
- The Level Width parameter deals with the “thickness” of the level, that is, a Take-Profit Order. The system doesn’t pick a certain number but an abstract value. You can choose one of five positions, where one stands for the lowest value and five is the highest one.
- The Level Text Shift parameter allows us to shift the levels’ lines drawn by the indicator in the horizontal direction. The negative numbers are a shift to the left and the positive numbers are shifted to the right. This is an analog of the mark “Chart shift” on the MT4 monitor.
- The Tex Font Size parameter deals with the font size of the messages displayed by the indicator.
- The Extend Lines parameter deals with displaying of the dashed lines on the charts: true – the lines are shown, false – the lines are hidden.
- The Show Daily Open parameter allows to show/hide the line from which the trading positions are made.
- The Number of Days parameter deals with the number of the days’ charts that will show the levels made by the indicator (from 1 to 22).
- The Show Trend parameter allows to display the indicator showing the trend’s direction if found any. The trend is calculated with the use of moving averages.
- The Daily Open Setting parameter allows you to choose a trading floor. The levels will be created from the opening of this trading floor (the indicator session):
1 — Time of the Broker
2 — Sydney session
3 — Opening of the Tokyo session
4 — The New-York midnight
5 — Opening of the European session
6 — Opening of the London Stock Exchange
7 — Opening of the New-York Stock Exchange.
- The Show_Clock parameter allows you to pick the clock (GMT, or New York, or the broker’s or the computer’s time) that will be displayed.
It is quite easy to trade using this Forex indicator if you follow these steps:
- Open the transaction at the predicted “Buy” or “Sell” levels
- Set the Sop-Loss Orders at the “BSL” or “SSL” levels
- Set the Take-Profit Orders at the ВТ1, ВТ2, ST1 or ST levels
- After the first two goals are accomplished, transfer the positions in the black.
The Ku Klux indicator is a simple and gainful indicator for direct trading. However, it does not mean that it cannot be used as an additional analysis tool of a trading strategy.