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know to use the indicator!
Since this indicator works that same way as the RSI 80-20 strategy
works you will find it very similar to this strategy only we will give you
picture of the indicator in action and what we recommend doing when
you see a possible entry.
*Note The EFC indicator is not an automated system. This indicator shows you where the
recommended placement of the stop loss, entry order, and take profit should be based on
the strategy. We highly recommend you try it on a demo account before using this on a live
account. This indicator will work and show you great places to enter trades. Always
consider how liquid the market is and be aware of news events.
We recommend that you read the RSI 80-20 strategy and get familiar
with this so that when you see the indicator in action you already have
an idea as to what is going on.
Let’s take a look at some of the basic features and what they do:
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EFC Inputs
Username: this is your unique username
Password: this is your unique password that was created
PaintCandleSize: This will change the size of the painted candles
(recommended default 6)
Default 6:
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Candle size 3:
Candle size 4:
You can see the difference in the sizes. We recommend you leave this
at 6, but if you prefer that candles be shaded more or less that you can
adjust to what your preference is.
Verticle line- Navy: This is RSI Lookback Line you see 50 candles back
at all times on the chart on any time frame.
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To change the properties of the: Vertical RSI 50 candle lookback line,
entry line, stop loss line, and take profit line, simply double click the
line + hover your cursor on the line and right click and tap on the line
properties:
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Entry_Line: This is where the recommended entry price placement is
based on current price action.
Stop loss_Line: This is where the recommended stop loss price
placement is based on current price action
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TakeProfit_Line Color:This is where the recommended entry price
placement is based on current price action
Arrow Up: This indicates a buy trade (Green)
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Arrow Down: This indicates a sell trade (Red)
SL_Buffer: This is set at a default 10 pips from lowest colored candle
(BUY trade) or 10 pips from highest colored candle (SELL trade)
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So above are the basic settings of this indicator.
To go to the Indicator Properties either right click on one of the colored
candles and click “EFC Indicator Properties”
Or right click the charts and click on indicator properties.
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Colored Candles
Adjustment
If your chart looks like this and you want the entire candles to be
colored the follow the steps below.
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Step #2 uncheck chart on foreground and then click ok.
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It should then look like this :)
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Now since you know about each
feature that the EFC indicator gives
you let’s dive into how this indicator
works…
Ok so here is what the indicator will look like normally (no trade active)
You see the 50 candle back line and that is it. Nothing is triggered so no
trade recommendation should show up.
Now…
Just because there is a BUY trade active on a M15 chart, does not
mean this will be active on M30, H1 or any other chart!
Lets explore:
Here is a CADJPY pair M5 chart:
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Here is the same CADJPY chart only on the H1 chart:
What this means is that if you take a trade on a certain time frame then
you should stay on the time frame the trade was recommended.
*When a trade is triggered the only way that the colored candles will
disappear is when the stop loss or the take profit line is touched by
price action.
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Just like you see above. So these green buy candles will stay green on
this M5, CADJPY for as long as it takes to hit the take profit or stop.
These are the basic features of this Indicator.
If you are still not understanding, leave us a detailed question and we
will get back with you!
Support: info@tradingstrategyguides.com
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The Strategy
You got this great trading tool we provided, you learned about all of the
unique features it comes with but how do you trade with this
indicator...
Step One: Search the Currency pairs for signs of reversals by looking
for the entry line + orange candles like it appears below:
Since the RSI is at a certain point these candles are now going to turn
orange.
Step Two: Wait for Divergence. (This occurs when
the candles turn dark Blue.)
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Step Three: Entry
Once there is divergence and the price action touches the set Entry line
then the trade recommendation will now activate:
A green arrow up mean that this currency pair is heading for a reversal
and you should BUY this pair.
So if the colored candles are appearing below the entry line then you
know this will be a buy trade.
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The line will help you determine a good stop loss placement and where
you should place you take profit.
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So at this point in time if you placed an entry order and the entry line
then you would be up a nice 15 pips on this trade.
That is the basic strategy to using this indicator for a buy trade. Wait for
the RSI trigger (orange candles) Divergence (dark blue) and then entry
(Green up arrow). Once all occur make the entry, place your stop and
your TP at the recommended lines. Same sequence goes for a sell trade
only the arrow will be a down red arrow and the candles will be red.
Now…
There will be times where you find, lets say a buy entry, but you are too
late because it has already triggered.
There are a few things you can do..
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1. Ignore the pair and wait for another entry is found
2. If it's a BUY trade you could buy it at the current price and place
you take profit where the recommended line is:
So you could still make some pips on this trade that was triggered.
Another way to could make an entry is by placing a buy stop or sell stop
if you think you will not be around when the trade is triggered.
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This trade I placed a SELL stop at the recommended entry line. So if the
price action hits where the recommended SELL entry is then I will
automatically get in this trade.
When you do make a trade and there is a better Stop loss placement in
your eyes don't hesitate to lock in your profit!
Just because the indicator gives you a recommended stop does not
mean you need to keep your actual stop loss at the price for entire
trade.
Like this trade. If you make the entry where the red arrow is then
maybe you could use a trailing stop loss to lock in profit. The price
seems to be hitting a support area so you could place your new stop
loss above this. Always remember to be following your rules!
If you never risk more than 2% make sure you are calculating the
appropriate lot size before you decide to make a trade.
These are some different entry scenarios that we have came across
while testing this indicator.
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If you have other suggestions for us, please feel free to let us know!
If you think you have found a bug in the system we would appreciate
you to report this to info@tradingstrategyguides.com
We will continuously update this indicator! All feedback is welcome.
Before you go, Check out these two trades we made using the indicator:
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+56 pip winner!
EURGBP 15 min chart trigger:
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+76 pip winner!
Not too bad...
That 1 risk to 3 reward ratio really presses your winners!
Thanks for your interest and enjoy your new EFC indicator.
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