Forex EFI indicator
Introducing EFI forex trading technical indicator. This is one of the best Forex indicators, it is very simple and has been specifically designed for use in the Forex market. The EFI indicator is not exactly a signal generator, it is used as a confirmation tool.
It versatile meaning you can freely combine it with other indicators without getting confused. Expert traders prefer using this indicator, due to its simplicity it is well suited for novice traders.
This special tool has the ability to let you know about the present market conditions and the most important feature is that it signals you in an instant about the market direction. The EFI indicator can be used for all types of trading such as scalping for the short term and swinging for the long term.
EFI indicator works well in stable markets, therefore it would be very profitable for you to avoid the news when using it.
Install the EFI indicator, your platform should look like this;
The EFI indicator is a histogram that moves in the positive and negative territory. Whenever the bars move in the negative territory, the signal is bearish and whenever the bars are in the positive territory, the signal is bullish. Remember to be careful of false signals, you can do so by tightening your risk management approach.
Conditions for buying Using EFI indicator.
- The market should be up trending.
- The EFI indicator should move to the positive territory from the negative territory.
- Place your long position as soon as above conditions are met.
- Place your stop loss just below the recent swing low.
- Take your profit when the EFI indicator dives into the negative territory.
Conditions for selling Using EFI indicator.
- The market should be down trending.
- The EFI indicator should dive into the negative territory from positive territory.
- Place your short position as soon as above conditions are met.
- Place your stop loss just above the recent swing high.
- Take your profit when the EFI indicator rises to the positive territory.