Summary of "📝 Range Average Retest Model Indicator MT4/5 Free – [TradingFinder]"
Range Average Retest Model Indicator for MT4/MT5 (TradingFinder)
Overview
The Range Average Retest Model Indicator is a free trading tool available on the TradingFinder website for MetaTrader 4 and MetaTrader 5 platforms. It assists traders in identifying trade entry points by analyzing price ranges based on user-defined pivots.
Key functionalities include:
- Automatic drawing of stop-loss and take-profit zones on the chart.
- Detection of a range zone and calculation of the average range level.
- Waiting for price to pull back and break the average range level to signal an entry.
- Support for both bullish and bearish trade setups, adapting entry, stop-loss, and take-profit zones accordingly.
- Extension of the range box until the price hits either stop-loss or take-profit.
Key Features & Methodology
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Range Identification: Determines the top and bottom of a price range based on pivots specified by the user and calculates the average of this range.
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Entry Signal: Triggered when the price pulls back and breaks the average range level.
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Trade Setup: Displays entry points, stop-loss, and take-profit levels once triggered.
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Risk-Reward Ratio: Default ratio is 1:2, but it is customizable.
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Range Box Extension: The range box continues to extend until stop-loss or take-profit is hit.
Settings & Customization
1. Swing Settings
- Pivot Calculation Period Length:
- Longer lengths detect larger, longer-term swings, resulting in fewer but more reliable setups.
- Shorter lengths detect smaller, shorter-term swings, leading to more frequent setups.
- Higher pivot length corresponds to higher reliability and confidence in setups.
2. Display Mode
- Options include:
- Both (bullish & bearish)
- Bullish only
- Bearish only
- This allows filtering trade signals by market direction.
3. Sensitivity Level
- A multiplier applied to the ATR (Average True Range).
- Compares the current average range with the previous average.
- Trades are displayed only if the distance between averages exceeds the set threshold.
- Helps avoid false signals during minimal price movements.
4. Trade Settings
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Maximum Distance: Maximum allowable candles between entry and target point to keep the average range valid.
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Minimum Distance: Minimum candles required to reach the average range level for a valid breakout.
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Take-Profit and Stop-Loss Multipliers: Coefficients applied to ATR to set these levels. Default values:
- Take-Profit: 8
- Stop-Loss: 4 This yields a 1:2 risk-reward ratio.
5. Style Settings
- Enable or disable display of range zones.
- Customize colors for bullish and bearish range zones.
- Enable or disable and customize colors for average range levels.
- Enable or disable and customize colors for take-profit and stop-loss zones.
Use Cases
- Ideal for traders using MetaTrader platforms who want automated identification of entry, stop-loss, and take-profit levels based on range breakouts.
- Assists with risk management by visually setting stop-loss and take-profit levels.
- Allows customization to fit different trading styles and timeframes.
Disclaimers
- This indicator does not provide explicit financial advice.
- Users are encouraged to adjust settings based on their own trading preferences and risk tolerance.
Platforms & Instruments Mentioned
- MetaTrader 4 (MT4)
- MetaTrader 5 (MT5)
No specific tickers, stocks, ETFs, or other assets were mentioned.
Presenter / Source
- TradingFinder (provider of the indicator and tutorial)
Category
Finance
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