Futuro FX indicator is based on the correlation. It is programmed to project the future price action based on the past history of the correlated currency pairs. It is designed to work on any time frame starting from the least which is 5min to the maximum that your platform can offer.
The indicator simply acts by correlating between a certain numbers of bars on the recent chart to a past number of bars making a sequence whose length is equal to the number of the bars that are being used in the correlation. The result of this correlation is a number in between – 100 and 100. The – 100 is the maximum inverse correlation while the 100 is the maximum positive correlation.
The Futuro FX Indicator is set to only measure the positive correlation by default. However the trader can always set it in a way that it can measure both the negative and the positive correction if they so wish.
Futuro FX Indicator displays some information on the top left corner that is placed in a blue text box. This is information is arranged downwards. From the top, there is the name of the indicator “FuturoFX v2.00”, then there is a link to a website and then the current open time which is the time the last bar that is displayed on the chart was opened. From there we go to the amount of candles that are analyzed which is put out of the max_history that is set. The next is the number of correlation performed (number of OHB in the analyzed history) and the length of each history block between square brackets. The next information is the number of the correlation matches that is above the threshold which by default is set at 75.0% the indicator also gives the best correlation that was found. The potential pips shows the amount of profit in terms of pips that the trader is set to make when he or she opens a sell or a long position. The indicator also goes ahead and gives the trader the score of the confidence level of the correlation calculations. This helps the trader to decide whether to trade or not.
How to place order using Futuro FX Indicator.
First, of all the trader have to have in mind some important notes about when to place orders using this indicator. These note include:
The trader should open any trade only when the level of confidence is above 50%.
If the potential (pips) shows that long is equal to the short or the long and the short have a difference of less than 10 pips, the trader should avoid trading.
The matches in the correlation should also be above 50% for the trader to trade.
Futuro FX Indicator Placing orders: the trader should place an order depending on the potential (pips) that is higher. That is if the indicator is predicting that the long will give a higher profit in terms of pips than the short positions then the trader should place a long position and vice versa. This can be done by placing orders in the direction to which the yellow bars (best projection) are formed.
When trading the trader should always place stops. The stops are placed as follows: the take profit is placed at the number of pips shown on the potential pips and the stop loss at the number of pips of the opposite trade that would have been placed.