When you draw two lines each day with measurements of the daily ranges you get a nice window of opportunity. If for example PA (Price Action) brakes this two lines you can use that as an opportunity to enter the trade. Simple Stop Indicator for MT4 does just that for you.
Here is a good strategy you can try with Simple Stop Indicator:
- Buy when PA (Price Action) Crosses above Green Line and Closes above Green Line. You should set your SL (Stop Loss) just below the red line.
- Sell when PA Crosses below Red Line and Closes below Red Line. You should set your SL just above the green line.
- Take profit can be fixed 1:1 or 1:2 of your stop loss. For example if your stop loss is 20 pips and if you are going with 1:1 risk / reward then your TP should be 20 pips. If you are going for 1:2 risk/reward then your TP should be 10 pips. Other option and recommended option is to use Support & Resistance lines for your TP targets.
Simple Stop Indicator is really simple to use and provides good entry points especially if combined with RSI or some other indicator.
How to install Simple Stop Indicator in MetaTrader 4 / MT4:
- Download/Copy/Save the MQ4/EX4 file into your C:\Program Files\MetaTrader 4\experts\indicators folder (or change the folder to your installation sometimes forex broker name)
- Restart your MetaTrader 4 application (assuming it’s currently open) … or Launch your MetaTrader 4 application
- On the left hand side, look for the “Navigator” window and under the “Common” tab, look into the “Custom Indicators” section
- Locate the indicator which you have just downloaded into the folder stated in Step 1
- Drag (Click and drag) the indicator onto the chart
- Choose your settings and click OK.
- TADA and your done!