Monday, October 14, 2013

An accurate long term forex trend indicator

It's called Linear Weighted Moving Average, with a period of 500 days it represents around 2 years and a half.

If you read the theory of this indicator, it put more weight in the latest information, so it's like an speed indicator. So if you compare it with actual prices, it clearly shows the direction of a possible trend.

Just look at these pictures and you'll see - these are daily charts:


With the line representing an entry point



For the #EURJPY it went up almost 3000 pips already. See how powerful is this indicator? The strategy just takes patience, but it pays.



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