When using the indicator on a different template, you will have something like the one shown on the chart above. The indicator is displayed on a different chart below the main trading chart. The indicator is mainly concerned with comparing the bear and bull candles in different time frames. The bear candles are represented using the maroon bars while the bull are represented using the green bars on the indicator chart.
The white segments that appear on the lower side of the bear candle representations on the indicator chart are just for filling the space. The signal in this case should be according the bar that is displayed at the time you are trading. However this method is not that efficient at it would require you to use the indicators template to increase the chances of making profits.
From the chart above it is evident that while using the original template of the Pipware indicator, the trader will have several other indicators that comes in handy in helping to make a decision of whether to sell or buy. From the chart above you can see that there is a MACD indicator, the Pipware indicator, Moving Average indicator and a stochastic indicator all on the same template. The Moving Average is the only indicator that is displayed on the main trading chart while the other indicators; MACD indicator, the Pipware indicator and a stochastic indicator are all displayed each on its different chart below the main trading chart.
In this case the chances of making an error in making a trading decision is reduced since there are several indicators to confirm any signal. The trader should always ensure that all the indicators are in agreement before placing any trade.
In this article, we shall concentrate on using the template of the Pipware indicator.
Placing orders using the using the template of the Pipware indicator.
The main indicator to consult before opening any position are the MACD indicator, the Pipware indicator and a stochastic indicator. The Moving average indicator is there to indicate the trend. However after getting the signals from all the other indicators, you have to check whether it agrees with the moving average. If not don’t place a trade yet.
Opening a long position:
The trader should place a buy order when in the MACD the bars are green and the red line is below the blue line. If the two lines (red and blue) of the MACD are located too low in the black bars and a PWC MACD green line appears, then avoid trading since the market is somehow dormant. Then look at the Pipware indicator chart and check at the current trend; if up, it’s a buy. Then move to the stochastic chart. The stochastic indicates buy when the two line move close to the upper dotted grey line. Then as the last practice, check to ensure that the market prices are above the Moving Average line.
Opening a short position:
The trader should place a sell order when in the MACD the bars are red and the red line is above the blue line. If the two lines (red and blue) of the MACD are located too low in the black bars and a PWC MACD green line appears, then avoid trading since the market is somehow dormant. Then look at the Pipware indicator chart and check at the current trend; if downwards, it’s a sell. Then move to the stochastic chart. The stochastic indicates sell when the two line move close to the lower dotted grey line. Then as the last practice, check to ensure that the market prices are below the Moving Average line.
After placing any trade, it is advisable to use the stops.
Example of when to place order.
Pipware-Indicator . rar
Source : forexobroker.com
