Highlights
📊 All Markets
💻 MetaTrader 4
🔓 Unlimited
🖍 Non-Repainting
♻️ Assets: All
⏰ Timeframes: All
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Description
The RETRAHO indicator employs an algorithm based on volatility to determine if the ongoing pullback is about to end. Once the pullback reaches its end, this indicates that the price is poised to RESUME its prior trend.
Trading Strategy
The RETRAHO indicator can be used for various trading strategies, and one of them is the following:
Identify the direction of the trend. You can use two moving averages, one based on 20 days and the other on 50 days. When the 20-day moving average is above the 50-day moving average, the trend is bullish, and you should only consider long trades. Conversely, when the 20-day moving average is below the 50-day moving average, the trend is bearish, and you should only consider short trades.
Assuming that the trend is up, you can enter a long trade when the RETRAHO indicator reaches a peak above 1.5. Conversely, if the trend is down, you can enter a short trade when the RETRAHO indicator reaches a peak above 1.5.
To manage your risk, set a stop loss order at the nearest support or resistance level. Additionally, your profit target should be at least two times (preferably three times) your stop loss level.
Indicator in Action
