One of the major drawbacks of the Parabolic SAR technical indicator is the fact that its signals might go unnoticed when displayed on the activity chart alongside other technical tools.
This means traders can easily miss out on its basic signal of trend reversal.
However, the Color Parabolic Metatrader 5 forex indicator was designed to correct this flaw by offering large colored dots that pop up during every witnessed trend reversal.
The Color Parabolic Metatrader 5 forex indicator is designed to aid investors determine the direction of a currency pair’s momentum along with the point in time when the said momentum has a higher-than-normal likelihood of changing direction.
The EUR/CHF H4 chart below displays the Color Parabolic Metatrader 5 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the large blue violet dot of the Color Parabolic Metatrader 5 custom forex indicator gets positioned below the candlesticks.
Sell Signal: Go short when the large deep pink dot of the Color Parabolic Metatrader 5 custom forex indicator pops up above the activity chart.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, a large deep pink dot of the Color Parabolic MT5 custom forex indicator pops up above the candlesticks.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, a large blue violet dot of the Color Parabolic MT5 custom forex indicator pops up below the candlesticks.
Tips: Day traders who develop their own strategies will find the Color Parabolic MT5 forex indicator quite handy and combining it with indicators such as the moving averages, stochastics and price patterns, will go a long way in ramping up winnings.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart pattern indicator
Customization options: Variable (Step, Maximum), Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: trend | momentum
Copy and paste the color_parabolic.ex5 indicator into the MQL5 indicators folder of the Metatrader 5 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL5 > Indicators (paste here)