QuantumFX Indicator is a Forex Indicator System that mainly works based on the MadroGolden filter indicator.
To produce a trading filter, this indicator is built using standard indicators, such as RSI, DeMarker, Momentum, MACD, Force Index, and Moving Averages. Trade when two or more signals of the same color appear (Blue – for buying, Red – for selling). When conflicting signals appear, avoid trading.
MadroGolden Filter Indicator
At the bottom of the indicator display window is the momentum signal. Red shows downward momentum and blue upward momentum. The signals for momentum are derived from the standard Momentum indicator available in Metatrader 5. Upward momentum is denoted by Momentum indicator values above 100. Values below 100 show downward momentum.
Moving up, we have the trend signal derived from the Force index and Demarker indicators. Red shows a down trend and blue an uptrend. An uptrend is denoted by the Force index being above 0, whilst the Demarker is above 0.5. The downtrend signal is shown when the Demarker is below 0.5 and the Force index is below 0.
Next are the indicator cross signals. These signals can also be used as confirmation trend signals. The indicators used to display these signals are the Relative Strength Index, Moving Average Convergence Divergence, and the Average Directional Movement Index. The signals are triggered as follows:
- crossup – if Rsi is above 50 , Macd is above the previous Macd value and Adx +Di > -Di.
- crossdwn – if Rsi below 50 , Macd is below previous Macd value and Adx +Di <-Di.
Last is the Moving average-based indicator arrows. These arrows simply show an upward or downward cross of two moving averages.
This QuantumFX System can give you trading signals you can take as they are or add your additional chart analysis to filter the signals further, which is recommended. While traders of all experience levels can use this system, it can be beneficial to practice trading on an MT4 demo account until you become consistent and confident enough to go live.
You can set the MadroGolden Indicator to send you a signal alert. This is helpful as it means you do not need to stare at the charts all day waiting for signals to appear, and you can monitor multiple charts all at once.
QuantumFX Trading System can be used on any Forex currency pair and other assets such as stocks, commodities, cryptos, precious metals, oil, gas, etc. You can also use it on any time frame that suits you best, from the 1-minutes to the 4-Hour charts.
Forex Indicator System Trading rules
QuantumFX Indicator System works great on the 15M and 30M charts. However, you can use this method in any timeframe. Remember, as a general rule of thumb, if you are trading, for example, the 30M chart, you always want to check the 1H and 4H charts and identify the longer-term trend. Do not take the signal on the 30M chart against the longer-term trend to minimize drawdown and increase consistency.
We also recommend altering(adding or removing) indicators to your need and experimenting with new strategies.
- Blue arrow up on the Madro Golden Filter Indicator at the bottom (it only shows after the close of the candle)
- A minimum of (3) indicators of the Madro Golden Filter must be blue (best if four for confirmation of entry). If one of these four (arrow, little cross, little square, and “x” square) is red, then there is NO entry.
- The actual candle must be GREEN.
- FXSniper LSMA must be green.
- PriceChannelStop v1 must be cyan color and below the candlestick.
- Use the Fibonacci retracement and pivot lines for more judgment. If you are not familiar with pivot points, then I suggest you read the additional pivot points summary information included in this package as a complimentary so that you can use discretion regarding scenarios of buy signals being created in combination with price’s proximity to pivot areas.
- Red arrow down on the Madro Golden Filter indicator.
- A minimum of (3) indicators of the Madro Golden Filter indicator must be red. If any are blue, then NO Entry.
- The actual candle must be RED
- FXSniper_LSMA should be red.
- PriceChannelStop v1 must be magenta color and above the candlestick.
- Use Fibonacci and pivot lines as mentioned above.
Stoploss and TakeProfit
Depending on your taste, you can use the SL in many different ways. There are no fixed rules with this system.
One method to use is to set the SL below the low of the last 3-4 candles, but not more than 25-30 pips for the slow pairs such as (EUR/USD) and 35-40 pips for the volatile pairs (GBP/USD, EUR/JPY, etc.)
The safest TP is the next Pivot Line minus the spread (example: entry long close to Pivot = Target at R1 line – spread)
Exit as soon as any of the indicators begins to change color. Also, you may want to move your SL to a safe position if that happens to try to stay in the trade or close half your position and ride the trade for more profit. This is all based on your tastes.