Индикатор Форекса Trafficlight

The “Traffic Light” Forex Strategy is of interest due to the use of a unique collection of indicators in it. The strategy itself refers to the trendy ones. This is an effective solution with the help of which you can successfully trade both in normal and incent accounts.

Before reading the article and writing your questions in the comments section, I recommend to watch this video. It’s not long but covers the biggest part of questions on the topic.

It contains a deep analysis, based on which the forecast of the movement of the price of the selected currency pair is constructed. Even though the recommended pair is EUR/USD, the strategy can be used for trading in other areas.

Description of the Traffic Light Forex strategy

Since the strategy is classified as a trend the most optimal periods (time frames) for trading are H4 and D1. Among the two, preference is given to the daytime period.

If you choose smaller time frames, then the number of transactions will necessarily increase, which will entail correspondingly an increase in the number of wrong and false signals.

For this reason, it is recommended to trade only on the above mentioned periods. Although some traders trade on five-minutes (M5).

The indicators used in the strategy

In its trading, the Traffic Light Forex strategy uses only 4 indicators:

• 1 standard, included in the basic set of MT4 indicators,
• and 3 other important indicators.

All of them together can identify the direction of price movement on the chart (trend) and tell the player the point of entry and exit from the trade.

Here they are:

• CCI Oscillator (standard) with a period of 14;
• Modified HMA (modified indicator of the moving average);
• RSI Custom (differs from the standard RSI);
• Indicator GoldMiner 2.

Let’s briefly consider the principle of the indicators in the Traffic Light strategy:

Modified HMA has the feature of changing its color when the trend reverses the price movement on the chart.

In its parameters, you need to set the period of the moving average, and also you can note at what distance the levels TP and SL will be drawn for the open position. If you trade on D1, then it’s better to put a period of If you trade on D1, then it’s better to put the period at

There is a very useful function of alerting with an audible signal about a trend change in the market. It is included in the “Alerts” field.

The next indicator used in the Traffic Light Forex strategy is RSI Custom. It works in the same way as the standard RSI, but it is displayed in the form of a three-color histogram.

Depending on the situation on the market, its columns can be of 3 colors:

• yellow,
• red,
• and green (like in a traffic light).

If someone does not like it, it is possible to change the colors to others. In the RSI Custom indicator settings, you can define the level for the level “valeur1” and “valeur2”. When the price closes below or above the set level, the changing color will signal about it.

The third strategy tool is the GoldMiner 2 indicator. It also has the form of a histogram, but with two colors (red and blue).

Performs an analysis of the last bars, characterizing the current state of the Forex market. The change in the analysis can be made through the parameter “CountBars”. The principle of operation of the CCI oscillator is known to everyone, so there is no need to reconsider its operation.

The Forex Traffic Light rules of trading

Signal for currency purchase (Buy):

– RSI Custom is painted yellow or changes to green;
– Modified NMA shows green color;
– Goldminer2 draws in green;
– CCI is on the zero line or crossed it from the bottom to the top.

This combination in the Traffic Light can speak about a direct signal for opening a long position at the level of a closing Japanese candlestick (if trading on D1, then at the close of the trading day).
In the opening order, you do not need to set take profit and make a stop at the level of the nearest local minimum.

When the CCI oscillator is below the zero mark and HMA Modified changes its color to the opposite one, you should close the position.

Signal for sale of currency (Sell):

– RSI Custom painted yellow or red; –
Modified NMA shows red;
– Goldminer2 draws in  red;
– CCI is on the zero line or crossed it from the top down.

To get a clearer signal, one should also take into account CCI levels, which indicate the oversold and overbought (, +). When the indicator crosses these levels and the oversold and overbought signals coincide with the HMA Modified data, the player will have the opportunity to exit from the position at the peak of the coming trend, without the need for waiting when the CCI crosses the zero mark.

Feedback on the Traffic Light Forex strategy

The Traffic Light Forex strategy is clear and simple. It does not require a deep knowledge of technical or fundamental analysis of markets. Many of the traders who seriously tested her work, give feedback on Traffic Light that it is also the most profitable.

However, there are some difficulties here, too. For example, some traders in their feedback on Traffic Light warn that the indicator line of HMA Modified can easily redraw the previous bar. This makes a part of the deals invisible. Goldminer 2 is also capable of repainting the four preceding candlesticks.

Beginners, above all, like the visibility in the decision. Traders like that the functionality of the indicators used in this trading system eliminates the need for them to plot 2 moving averages to determine the entry to the position.

When working with the “traffic light” on the chart, you can immediately see that the correction or reversal begins. It’s enough just to follow the schedule carefully and react in time to the received signals.

Submit by Sam 27/01/

Scalping FX Traffic is and trend following strategy with many filters for sydeways market. The filter indicator more important is Traffic light indicator.

Time Frame 15 min, or higher.

Currency pairs: any.

Metatrader indicators;

Traffic lights indicator;

FDM Buy Sell Pressure;

FXDD filter indicator;

RCS Fibo

ASCtrend risk 4 is optional

Rules for Scalping FX Traffic

Long entry

ASCTrend Buy arrow confirmed by:

Traffic light 3 bars acqua color;

FDM Buy Sell pressure acqua ;

FXDD filter at least 3 bars aqua color.

Short entry

ASCTrend Sell arrow confirmed by:

Traffic light 3 bars brown color.

FDM Buy Sell pressure brown

FXDD filter at least 3 bars brown color.

Simple Option use only:

FDM Buy Sell Pressure and FXDD filter indicator with the same conditions.

Exit position 15 min time frame options:

take profit pips.

At the RCSFibo levels.

Ratio Stop loss

Stop loss on the prievious swing.

In the picutures  Scalping FX Traffic in action.

Share your opinion, can help everyone to understand the forex strategy

An approach similar to the usual traffic signal is used in many indicator systems, which warns the driver about the time when you need to stop, get ready to move, and hit the gas pedal. Of course, this analogy in the financial markets has been noticed a long time ago, resulting in the Traffic Light trading strategy.

It should be noted that to date, several versions of this method can be found, the most popular of which will be considered below. But we will start our review with the original version, of course, which is considered to be the starting point for the further development of the algorithm.

So, the Forex traffic light needs only two standard indicators: MACD and moving averages, where the first merely acts as a filter of false alarms, and the rest of the work, from finding entry points to determining the trend, is assigned to the movings with the following settings:

• Red – simple on the closing prices with period ;
• Yellow – simple on the closing prices with period 55;
• Green - exponential on the closing prices with period 5;
• Two blue (dashed) – exponential in the maximum and minimum prices with period

MACD settings (24, 52, 18) can be found in the figure above. As many have already guessed by the parameters (the most of which are multiples of 12 and 6), the optimal timeframe for trading is “hourly”, so we will not deviate from the rules and consider the classic example of a signal to buy (the conditions will be reverse for the signal to sell).

Rules of making deals generated by Traffic Light strategy V.1

Despite the apparent excess of tools, rules of making deals can be described in just a few lines. Firstly, the main lines (in bold) should locate in the following order to buy: EMA(5)>SMA(55)>SMA(), or, to put it more simply, the green line should be above the yellow and red.

Secondly, the MACD histogram values are located above the red signal line, thus indicating the lack of correction against the trend. It should be noted that this indicator can be useful not only in the moment of the appearance of “green light” – for example, it can be reasonably applied for the timely closing of positions, because if you take profits on the moving average, the “notorious” delay can reduce the effectiveness of the system to zero.

In fact, the point of profit taking was noted above, the only thing you should pay attention to is the blue dashed lines, used by the Traffic Light strategy as a filter. In particular, if the price is “sandwiched” inside the channel, the market is flat, so it is not recommended to make transactions, and it is better to wait for the breakdown of the corresponding boundary.

As for the stop-loss, the community hasn’t come to a straightforward opinion: for example, the author recommends it to be installed behind the minimum (maximum) of the previous day plus points, while other traders do not recommend the use of a stop order but suggest always closing the order manually by the reverse signal on MACD.

After a series of experiments and observations, we conclude that the latter are right, because quite often the stop is removed by the false breakthrough, and the hourly chart allows to quietly accompany the position and timely record losses. Briefly summarizing, the first version of the Traffic Light will be characterized by several features:

• firstly, this is an elementary algorithm which can’t confuse by definition;
• secondly, the most reliable indicators are laid in the system;
• thirdly, it is not without drawbacks – the signals are delayed.

Traffic Light strategy in a new incarnation

It’s quite difficult to meet the first version in the vast World Wide Web today, since it was invented before the global financial crisis, which subsequently made its own adjustments to the financial markets – in particular, there were fewer stable driving directions after and more false breakthroughs. More sophisticated techniques came in place of the simple solutions, designed to increase the accuracy of the signals in the unstable period, one of them was a new version of the Traffic Light strategy.

It is difficult to say whether the goal was pursued to modernize the old method or not, but only the name was left from the previous version, and the strategy became a completely different model designed to trade on the daily charts. To make the signals as accurate as possible, you will need to find and set the following indicators (the values of the recommended settings are indicated in brackets in order):

• RSI Custom (8;55;45) – standard RSI, but presented as a bar graph, looking like a traffic light; HMA Modified (48;38;8) – modified moving average, which changes color depending on the angle of inclination;
• GoldMiner 2 (7;50;6) – another oscillator, designed to analyze the trend on the larger timeframe: respectively, the period of strength of bears is represented by red bars, and the predominance of the bulls – by green ones;
• CCI (14) – standard CCI.

Unlike the previous system, the new Traffic Light strategy consists of two modules, one of which defines the trend and the second is only intended for the search of entry points. For a better understanding of the situation, let’s consider the criteria for the purchase again (the rules will be diametrically opposed for the deals to sell):

• GoldMiner and HMA Modified changed the color to blue (this is the first module – the identifier of the trend);
• RSI Custom bar stained green. Please note that if the trend has changed to bullish, but the color of the RSI remained yellow, this is not yet a signal, but just a notice to be ready to open the order; 
• CCI should be above the zero level.

The rules of setting stops are also different from the previous version – in particular, the safety order is recommended to be set behind the nearest local extreme, in this case – behind the low. If in the first strategy this tactic was a failure, in this case it is much more efficient, because the operations are not done on the hourly but on the daily chart, the levels of which are more reliable.

But lucrative positions are closed in a similar manner, i.e. at a corresponding signal, which can be either a change of direction to the HMA Modified, or the intersection of the CCI indicator and zero mark in the opposite direction.

In conclusion, we should note an important moment: due to the fact that the initial version well indicates medium-term trends, and new modification recognizes the long-term trend, it is reasonable to combine the two versions of the system under consideration, in particular, to enter into all transactions by the signals on the H1, but only in the direction of the trend on the D1. If the systems signals are in conflict, the order is better not to open. Source:Dewinforex

A trader who chooses success in his work in the foreign exchange market is constantly busy with important things - he monitors and studies exchange rates, evaluates quotes, and also carefully analyzes important financial events, which allows him to fully penetrate deep into the financial sector and markets. But a beginner should also understand that not everyone can turn their fantasies into reality and become a real professional - an experienced market player who prefers rational and balanced trading tactics in their market operations, making deals, and entering the market. Fans of such analysis should pay special attention to the trading tactics called «Traffic Light», which is designed to implement such principles.

The traffic light strategy is a multi-currency trading approach in the forex market. For the most part, this is a trend trading system, which has an optimal time interval for the implementation of trading operations (H4 or D1). The use of lower timeframes implies an increase in the number of trading operations with a parallel build-up of imaginary signals. Based on such information, it is recommended to apply this strategy in fixed time intervals, which were initially incorporated into the tactics. To begin with, you need to install the following indicators (those tools without which the full-fledged operation of the system is impossible): -HMA modified; - Goldminer 2; - Trend Master; - CCI indicator; -RSI custom.

The highest efficiency is achieved at the moment when the work of all indicators coincides - the tools that take part in the implementation of the selected trading schemes function smoothly. The developers of the strategy are professionals, and its foundation is based on a system with an optimal level of balance, and the system also contains some signal parameters - indicators that are similar to oscillators (visually), as well as trend tools that perform the task of filtering.

So, the strategy is based on the following 4 whales: 1) HMA Color indicator consists of several straight lines - lines, one of which is red and the other is green. The meaning of this tool is to modify - change the moving lines, which is why their parameters can be changed - selected and adjusted to the desired format (up to optimal values), which will be the moving average level. The main task of this indicator is to filter trends: bullish trends are indicated in green, and bearish in red. 2) The Gpldminer indicator is located in the area of ​​the main auxiliary window and is presented in the form of bars (red and green shades). With its help, the indicator periods are optimized and adjusted. In the «Traffic Light»system, Goldmine performs the function of filtering trends. In the case when the bar is located in the red area, you need to sell, if in the green - buy. 3) RSI Costume is characterized by reds, greens, and yellows. This tool is based on the standard RSI oscillator. Entering the settings menu will make it possible to work with periodization, as well as control the level gradation, which is responsible for the shade of the candles. 4) CCI - standard oscillators that all trading terminals have. In the tool options, you can adjust the fixing periods, and this tool performs the task of withdrawing to the appropriate positions, in the period when a touch of the zero levels occurs.

To effectively enter a buy position, you need: - HMA indicator was green; - Columns of Goldminer instruments have also been colored green; - RSI Costume was also green; - the CCI oscillator should also be located at a level that implies the crossing of the zero value in an upward trend with the indicated exit upward, or with a probable direction to this. To exclude the possibility of redrawing, it is advisable to exit when the bar is closed. An effective entry into a sale is best done under the following conditions: - HMA Color lines with Goldminer lines and RSI columns must be red; - CCI indicators must touch the downward line of the field, or be close to such an intersection.

As for protective orders, stop losses must be present: the order must be placed on a line that is located below the minimum values ​​of the signal bar when buying, and above the minimum indicators when selling. Among the minuses, I would like to highlight the property of the indicator to redraw, and from the pluses - clear entry and exit points.

Binary Options

Automated trading risks Traffic Light Indicator by Mr Sakkarin Panya Curious about a low drawdown forex robot that's perfect for overcoming challenges from prop firms? For just $30, you can surpass the hurdles set by prop firms. Discover the ideal companion to navigate the prop firm landscape with minimal drawdown – your gateway to success starts at just $30! Capital preservation EA AOOLA SOURCE :eunic-brussels.eu://eunic-brussels.eu This indicator shows: A green light in case the price goes up; A red light in case the price goes down; A yellow light in case there are a sideways trend. A sideways trend is the horizontal price movement that occurs when the forces of supply and demand are nearly equal. This typically occurs during a period of consolidation before the price continues a prior trend or reverses into a new trend Indikator Forex Terbaik MT4 robot performance analysis MetaTrader broker reliability remote prop trading reviews market order forex copy trading app exotic forex pairs technical analysis tools Fibonacci retracement risk matrix Powered by Firstory Hosting

The Traffic Light trend strategy Metatrader 4 Forex Robot is an algorithmic trading software that shows a trend system built on moving averages with colors as seen in traffic lights.

The main purpose of coding this EA is to examine the trading robot on historical data and select functional parameters.

A buy entry is initiated based on a set of printed logic that shows that the moving averages are aligned in a top to bottom fashion i.e. Green – Yellow – Red.

A sell is triggered on the other hand is based on the printed logic that follows the moving averages getting positioned in the reverse order i.e. Red – Yellow – Green.

The moving averages are represented as red ( SMA period), yellow (55 SMA period), green (5 EMA period), dotted blue (24 EMA period), and dotted brown (24 EMA period).

Free Download

Download the “traffic_light_eunic-brussels.eu4” MT4 robot

Strategy Tester Report

Find below the Traffic Light trend strategy forex robot strategy tester report for the GBP/USD forex pair on the 1-Hour chart.

Overall Performance

The EA made a total profit of $ from a total of 91 trades. The largest winning trade generated $ in profits, while the largest losing trade generated a loss of-$

Statistics:

Bars in test: ticks modelled

Initial deposit: $

Total net profit: $

Total trades: 91

Largest profit trade: $

Largest loss trade: -$

Consecutive wins: 2

Consecutive losses: 3

Download

Download the “traffic_light_eunic-brussels.eu4” Metatrader 4 robot

MT4 Forex Robot Characteristics

Currency pairs: Any

Platform: Metatrader 4

Type: Expert advisor

Input Parameters: s1, Enable “no loss,” When to move break even, How much pips to move sl, Lots size, MaximumRisk, s2, DecreaseFactor, TrailingStop, Stop Loss, MagicNumber…

Time frames: 1-Minute, 5-Minutes, Minutes, Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month

Type: SMA EMA

Installation

Copy and paste the traffic_light_eunic-brussels.eu4 into the MQL4 Experts folder of the Metatrader 4 trading platform.

You can access this folder from the top menu as follows:

File > Open Data Folder > MQL4 > Experts (paste here)