You can now download the Dots indicator for free on AtoZ Markets indicators gallery.
Dots indicator displays the current trend direction by placing the dots on the main chart. The blue dots signal bullish trend and the red dots signal bearish trend. Although the indicator doesn’t rely on any standard MetaTrader indicators, it uses a call to moving average to get the price values depending on the input price type used (Close, Open, High, Low, Typical, etc.) The calculation is based on the cosine of the angle of price change. Trader can modify several input parameters. The indicator is available both for MT4 and MT5 versions of the platform.
Length (default = 10) — the period of the indicator. The higher is the value the more it lags but less false signals appear.
AppliedPrice (default = PRICE_CLOSE) — price type to use in calculations.
Filter (default = 0) — particularly useful parameter to filter out spikes without adding lag.
Deviation (default = 0) — shifts indicator display vertically.
Shift (default = 0) — shifts indicator display horizontally.
How to trade with Dots indicator
The recommended strategy is to wait for 2 dots of the same color and enter the trade with the trend. Unfortunately, it sometimes fails. Using one dot signal with Filter parameter set to something like the currency pair’s spread x 3 could be a better idea.
How to download and install an indicator
In order to install the indicator on your MT4 or MT5 platform, you need to follow these steps:
- Click on the “Download Indicator” button located at the bottom of the screen.
- Save the file to your computer.
- Extract and move the files into the MT5>Indicator folder of the MetaTrader4 software file directory.
- Restart your Metatrader platform.
- Navigate to “Indicators.”
- And select the “Dots indicator” template to apply it on the chart.
Note: This indicator was developed by a third party. AtoZ Markets does not carry any copyrights over this trading tool.