Saturday, October 26th, 2013 by Sjay Bell
I have a question for you guys. What will we do without technical indicators? Imagine if we only had access to only pure blank charts with just trend lines and no more than that. Price Action traders will be okay. But, those who use technical indicators, let’s just say we may not be trading for long. So, thank goodness for indicators. Speaking of which, I want to introduce you guys to an awesome indicator called the XProfuter Indicator. There 100’s and maybe even 1000’s of indicators to choose from. We try to handpick these indicators that can help us predict the market. Now, I am going to say this. There is no indicator that can predict the market 100% of the time. But, there are some that are pretty good at trying. The XProfuter indicator is one of them. I know you all are dying to know more about this indicator. So, let’s get into it!
What makes the XProfuter indicator awesome is that it has the ability to predict movements in the markets like reversals before they happen. It is rumored that this indicator works 92% of the time. It’s like it has the ability to recognize patterns then analyze what happens when these patterns are established. With this information, it predicts what price will do within the next few bars.
Now, I don’t advise you guys to use this indicator as a gauge for your trading decisions. It fully benefits you when you make your own trading analysis, and just use it for conformation. While testing it, I found that it works great with the Momentum, Relative Strength Index, and the great Value Chart. Now, it’s optional for the Momentum or Relative Strength Index. I prefer the Momentum indicator. But, the Value Chart is a must. You can actually make you own little trading pattern off of this. I will show you how and it’s fairly simple. First, you want to make sure that the Value Chart indicator shows that the market is significantly or at least moderately overbought or oversold.
For those who need me to elaborate, a reading greater than 8 signal that the market is significantly overbought. Whereas readings below -8 signal that the market is significantly oversold. The same thing applies vice versa. Readings greater than 4 signal that the market is moderately overbought. Whereas readings below -4 signals that they market is moderately oversold. Once you get confirmation from your Value Chart, all you have to do is look for the XProfuter and Momentum indicator to point in the same direction. This is a great method for those of you who like to trade with little to no technical analysis.
Snapshot of Xprofuter indicator on hourly expiry GBP/USD
To conclude, this technical indicator that shows great promise. Some say it works 92% of the time. But, you should be the judge of that. If you really want to know if it’s as cracked up as it’s described, testing on a demo account will be greatly advised.