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  1. #1
    Administrator Martin Kay's Avatar

    Hot Paint the Town Red Indicator – Profit from the Trend !!!

    Hi guys, Michael has a new and very intriguing article on Paint the Town Red Indicator. It gives highly visible signals and in combination with other indicators could give good results. Check the full review!

    Originally posted by Michael Hodges. Here is the full review Paint the Town Red Indicator for Binary Options!

    Why Paint The Town Red Doesn’t Suck

    This indicator doesn’t suck because it is a valid trend following indicator. It is a great way for traders to easily see buy and sell signals if it is used properly. Since it is a trend following indicator it is first necessary to understand trend determination. Once trend is established then signals can be taken in the direction of the trend whenever the corresponding signal is generated. Looking at the chart provided by the indicators creator we can see that 8 bullish and 9 bearish signals are generated in a 24 hour period. The underlying trend isn’t given in the example but I hope it was bullish. The bullish win/loss ratio is 5:3, the bearish win/loss ratio is 3:5. This means a bullish trader using this chart should have a 60% win ratio, more than enough to profit using binary options.


    My Final Word On Paint The Town Red Indicators

    I think this indicator has use for beginning and experienced traders. However, it needs to be used in a package of indicators and not by itself. It is not a strategy, just a tool. Traders also need to have at least a basic understanding of trend and trend determination. Paint The Town Red is a signal generator and not a measure of trend, strength or support/resistance. When used with a multiple time frame approach and with other corroborating indicators it will provide excellent binary options signals. I recommend this indicator for anyone who appreciates highly visible signals. This indicator will show its true value once you have determined the primary and near term trends, along with potential areas of intra-day support and resistance.

  2. #2
    Active Member pipshunter's Avatar
    Interesting indicator and easy to implement! Thank you Michael for the work done! The only problem remain how to determine the trending conditions.

  3. #3
    Legendry Member Michael Hodges's Avatar
    Check out our threads on technical analysis and trading strategies, there is lots of information there on different methods of trend detection.

  4. #4
    Solid Member Murphy13's Avatar
    It looks pretty good to with reasonable SL/TP implemented. It could be tested on demo and if profitable to trade it real!

  5. #5
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by Murphy13 View Post
    It looks pretty good to with reasonable SL/TP implemented. It could be tested on demo and if profitable to trade it real!
    demo accounts are a great way to practice new indicators like this one. I think it would work really good to weed out false signals, I am a firm believer in only trading with the trend.

  6. #6
    Veteran Member hchandra's Avatar
    Simple and straightforward, this one easier visual confirmation than moving average without color changing background.
    good when market trending, but I think must be careful when low activity time.

  7. #7
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by hchandra View Post
    Simple and straightforward, this one easier visual confirmation than moving average without color changing background.
    good when market trending, but I think must be careful when low activity time.
    It's kinda like a MACD, but when the zero lines is crossed the prices change color too, I thinks its a good enhancement for any oscillator and can help weed out the false signals when following the trend.

  8. #8
    Specialist Member RCox's Avatar
    It is hard to argue against trading with the trend because this is where the majority of the market's momentum rests. That doesn't mean it is not without its problems, however, because it is nearly impossible to buy low and sell high. This is because most of the market move has already occurred. If this had not happened, there would be no trend to trade off of.

  9. #9
    Veteran Member hchandra's Avatar
    Each tools have its own positive and negative Richard, cannot deny your statement "buy low and sell high" nearly impossible, this is coming from someone who know cycle of shares market where best application of "buy low and sell high" happen when market crash, but when market crash usually its hard to preserve funds to buy anything.
    For forex which is trending 80% of the time I think that will be harder. Other way to profit is "buy high and sell higher" or vice versa, that is trend following idea I think.

  10. #10
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by RCox View Post
    It is hard to argue against trading with the trend because this is where the majority of the market's momentum rests. That doesn't mean it is not without its problems, however, because it is nearly impossible to buy low and sell high. This is because most of the market move has already occurred. If this had not happened, there would be no trend to trade off of.
    I try to capture the extremes of a dip in an uptrend, and reverse in a downtrend. Works good in a clearly trending market, mixed results otherwise but basically good.

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