What is Forex Glaz?
With the help of the Forex Glaz indicator, traders determine the direction of price movement or, in other words, the trend, while trading on the Forex market. The algorithm of its work is based on the search for extrema – potential areas of trend reversal. In fact, this instrument is a modification of another indicator – “ZigZag”, and in terms of its operation it also resembles the “Fractals” indicator. In this modification, it differs from its prototypes in several convenient “chips”, which we will consider further.
How does Forex Glaz work?
The Forex Glaz indicator marks the market reversal areas at extremum points with special markers. They look like small yellow circles on the chart. Inside each such marker there is a mark in the form of “currents”. Tags are divided into two types:
- A red dot (Lo – “Red Eye”) in a yellow circle is a signal for a possible entry into the market with a Buy-position.
- The blue dot (Hi – “Blue eye”) in the yellow circle is a signal for the likely opening of a Sell order.
In addition, the indicator draws on the chart:
- The blue dot is above the candle;
- The red dot is under the candle.
To make it easier for traders to interpret the signals of this indicator, its markers are connected to each other by a yellow line.
It is recommended to work with this tool on TF M15-N1. It is highly undesirable to trade with Forex Glaz on M1 TF.
How to determine the entry points to the market?
In order to find the exact entry for this indicator and open the corresponding position, it is necessary that 4 signals are observed on the chart:
- The indicator has drawn a specific marker (Red / Blue eye);
- After the appearance of the marker, a change in the colors of the Lo / Hi points should be observed;
- It is necessary to determine the trend trend (up / down);
- Consider the strength of the trend.
As an example:
- The indicator has drawn a Blue Eye on the chart above the candle;
- A red dot appears under one of the following candles (at its close);
- A strong trend is identified;
- The trend trend is downtrend.
In this situation, all signals from the Forex Glaz indicator have been received, which means that it is possible to open a Sell position.
A trade is closed by Stop Loss and Trailing Stop, you can also close positions by breakeven.
Characteristics of the structure “Forex Glaz”
This trading instrument is characterized by several important parameters. The trader, at his discretion, can customize its work and enable / disable some of its elements. This can be done in its Properties Window, which is opened by right-clicking on the indicator.
In the Properties window of this tool, you can see 5 tabs:
- About the program – here you can find out the full name of the tool, its version and a very brief description of the algorithm of its operation.
- General – on this tab you can “Allow / Deny”:
- Dll import;
- Import of external sources;
- Change alarm settings.
- Colors is a tab that allows you to individually customize the color palette of the Forex Glaz lines and markers on the chart:
- Display – here we can specify TF to display this instrument on the chart.
The main parameters for trading with the Forex Glaz indicator are:
Working with Forex Glaz, a trader can enable or disable the option to display the Resistance / Support lines on the chart on the “Input Parameters” tab. The lines are respectively colored red and blue.
The strength of the trend
The indicator we are considering takes into account 7 variants of the Trend Force:
- Up strong
- Up moderate
- Up weak
- Horizontal (i.e. – flat or neutral trend)
- Down weak
- Down moderate
- Down strong
Moderate Up / Moderate Down signals indicate a good Uptrend or Downtrend. When determining them, it is recommended:
- In the first case, consider only Buy orders.
- In the second, only Sell orders.
Candle formation time
A very useful parameter that displays the time before a candlestick or bar is finally formed. The parameter will be useful for those who trade using the Candlestick Analysis method, for whom it is extremely important to know the opening / closing time of the candle.
An example of trading on signals “Forex Glaz”
We managed to get a signal to enter with a sell from this indicator:
- A Blue Eye appears on the chart above the candle;
- A red dot appeared under one of the candles below the Blue Eye;
- Trend – Strong Up;
- The trend trend is upward.
What to do in a situation when in its Information window the indicator defines a trend as “strong and upward”, but at the same time draws a sell marker (Blue Eye) on the chart? What decision would you make? In this case, let’s focus on markers.
As a result, a trade with Stop Loss of 15 pips was successfully closed when a new marker (Red Eye) appeared. The stop of 15 points withstood a slight pullback in the price, and then, accompanying the trade, we brought it with a profit of 33 points to a new reversal signal – Red Eye.
So, to summarize the sale:
- Opening price – 1.1685
- Closing price – 1.1652
- Stop Locc – 15 points.
Profit per trade – 33 points.
In this case, the indicator signals do not contradict each other, and we, without hesitation for a long time, open a buy position.
Stop Loss for us is 15 points. If possible, we will move the deal to breakeven and continue to lead it to the maximum profit.
We have an interesting situation unfolding:
- We were able to move the trade to breakeven by 10 points, and we were not knocked out with a slight price rollback.
- There is a closing point at the price level of 1.1614. However, the indicator still identifies the trend as “strong and upward”; moreover, a new signal about a possible trend reversal has not yet appeared on the chart. Therefore, we continue to accompany our deal, preparing for small price pullbacks.
- The second closing point appeared at the price level 1.1672. The upward trend continues, the trend is still strong, there is no new reversal signal – we continue to hold the position.
- On the chart, at the price level of 1.1734, a Blue Eye appeared – it means that a market reversal is possible soon, so we’d better close at this level.
Let’s summarize the purchase, taking into account the profit at all three closing points:
- Opening price – 1.1583;
- Closing price_1 – 1.1614; profit = 31 pips.
- Closing price_2 – 1.1672; profit = 89 points.
- Closing price_3 – 1.1734; profit = 151 pips.
So, with Forex Glaz, you can make good profits if:
- transfer the deal to breakeven on time, taking into account price rollbacks;
- do not panic at the next small price rollback;
- hold a position when the indicator confirms the strength of the current trend in the absence of a new signal for a market reversal.
Having tested the Forex Glaz indicator, we can conclude that it is not a perfect tool. During testing, we noticed signals that contradict each other. How to act in this case and which one to focus on is difficult to tell. Every trader should intuitively feel which signal to trust and which one to trust. Anticipating the direction of price movement, you can also focus on news.