The Price Movement Strength (PMS) indicator is a trading tool designed for the Forex market. It visualizes the direction and magnitude of price changes through the use of color-coded candles on each price bar, offering unbiased Forex analysis for traders.
How the Price Movement Strength Indicator Works
The PMS indicator presents the closing level of each candle as zero on the current bar, signifying that the price has not fluctuated within that time frame. Depending on the trend in the currency market, the candles will change color. A green candle indicates a rise in price, while a red candle symbolizes a decline.
Customizing the Price Movement Strength Indicator
Traders can adjust the PMS indicator according to their Forex strategies using two parameters: BuyLevel and SellLevel. These parameters are set as percentages, representing the change in price that would trigger a buy or sell signal. For instance, if the BuyLevel is set at 1, it means a 1% increase in price would prompt a buy action.
Alerts and Calculations
The PMS indicator also has an EnableAlert feature that sends notifications when the buy/sell levels are reached. The ResetEachBar parameter allows traders to choose the calculation mode. It can either be relative to the opening price of the current bar or relative to the opening price of a previous bar, depending on the chosen timeframe.
Applying the Price Movement Strength Indicator
The PMS indicator can be used on any trading instruments and timeframes. For example, a buy deal is opened when the closing price of the green candlestick surpasses the BuyLevel. Conversely, a sell deal is initiated when the closing price of the red candlestick falls below the SellLevel. If the closing price of the indicator candle falls between the SellLevel and BuyLevel, it indicates no significant market movements and no deals are opened.
FAQ
Can the PMS indicator be used on lower timeframes?
Yes, the PMS indicator can be applied to lower timeframes to corroborate a signal on a higher timeframe. It can also be used in strategies to detect price rollbacks after a powerful movement.
Where can I watch independent testing of the PMS indicator?
Independent testing of this product can be watched on the forexroboteasy.com website. Subscriptions for updates on the results of testing this product are also available.
This unbiased Forex software review is designed to provide insights into the workings of the Price Movement Strength indicator. If you have had experiences using this tool, please share them to contribute to a broader understanding of its utility in the Forex market. Remember, this is an independent product review and is written in the third person, without any ownership claim to the product.
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