This article describes how to apply turning point forecasts in the forex market. Here we use the SwingSize and SwingAge variables to identify the turning point probabilities for each price movement.
- Swing age is the number of candle bars from the latest bar to the right edge of the swing.
- Swing size is the number of candle bars from the right edge of the swing to the left edge of the swing.
These two variables provide the relative coordinates of the right and left edges of the price fluctuation, so you can find the turning point value for each price fluctuation. Please check the screenshots to clarify your understanding.
From an application perspective, turning point forecasts are useful because they quantify the risk of trading between 0.0 and 1.0 (or 100%). Quantification of your transactions is always good because you have something to stick with as guidance for your transactions. When you don’t have guidance, you will often find that your emotions ruin your deal.
There are two basic concepts about probability and some advanced concepts about mother wave and child wave. For your own benefit, if you want to improve your trading performance in the long run, everyone should understand the basic concepts.
The first basic concept is that if the price reaches a turning point probability above 0.7 (or 70%), you can look for potential reversal opportunities within this turning point probability range. In other words, detecting changes in market direction is a good thing. It can be either a fix or a global turning point.
In the second basic concept, you can find a good breakout opportunity when the price reaches a turning point probability of 0.0-0.5 (or 50%). In other words, detecting continued price fluctuations is a good thing. Since it has already been explained elsewhere, we will omit advanced concepts here.
If you don’t have access to turning point forecasts, it’s okay as we provide forex market turning point forecasts for free. Anyone can access standard day trading turning point forecasts for free from the links below.
At the same time, if you need a MetaTrader 4 or MetaTrader 5 scanner, here is a link to a fractal pattern scanner. The Fractal Pattern Scanner gives you access to a turning point probability scanner + mother wave breakout signal, inversion signal, and many other advanced features.
Applying Turing Point Forecasts in Forex Markets-Trading Systems-January 4, 2021
https://www.mql5.com/en/blogs/post/742238?utm_campaign=RSS&utm_medium=display&utm_source=MQL5+EN+Blog Applying Turing Point Forecasts in Forex Markets-Trading Systems-January 4, 2021