Forex uses different indicators, including level indicators. They serve as a guide for opening and closing deals. The Forex Goiler indicator also belongs to such tools. It can be used to determine entry points, as well as optimal levels for setting stop-loss and take-profit.
Forex goiler indicator description
This indicator is based on a trading technique developed by William Gann. This is a fairly well-known expert who also created well-known indicators – angles (fan), Gann grid and others. The Goiler algorithm allows you to receive a trading signal once a day. It also shows the levels at which stop-loss and take-profit can be placed. The tool is recommended to be used only on D1 daily charts. Here, signal accuracy is increased by cutting off unnecessary market noise.
Installing the tool
The Goiler indicator is not found in trading programs, for example, in the MT4 catalog. Therefore, it should be downloaded and added to the terminal as follows:
- Get the archive.
- Open it and select all files.
- Copy and move them to the desired folder, as in the screenshot.
- Close the program.
- Open it again.
- Add a new instrument to any chart through the Meta Trader Navigator or the “Insert” menu item.
As a result, 5 multi-colored lines will appear on the chart – dark, light green, white, yellow and red.
The decoding for each line is additionally given in the lower right corner (colors correspond). These are price values - for example, the white line in this case occupies the level of 1.41261, and the yellow line – 1.41897. These readings change in real time, depending on the quotes received in the MT4 trading terminal.
We also recommend exploring simple spread indicators for MT4 such as Spread, Monitoring Spread, Info Spread and others.
How to decode lines
All lines run parallel to each other, and they appear at midnight (0:00) terminal time. Those. when a new trading day comes, the chart starts to form the next 5 lines. This can be seen in the example of the volatile GBP / USD currency pair.
The lines lie at important price levels, each of which has its own meaning:
- white is the zero line;
- green – the first take profit target;
- dark green (and in this case blue) – profit target (here you can put a second take-profit);
- red – stop-loss is placed here;
- yellow shows the average price value, changes online.
How to trade with the Goiler indicator
This indicator can be used as the basis of a trading strategy. It is important to pay attention to the location of the white and light green lines:
- if white is above light green – a sell signal;
- if white is below light green, it is a buy signal.
The market is entered when the price reaches exactly the white line. Moreover, stop loss is placed along the red line, and take profit – along the blue line (in other versions, dark green).
After the opening, 2 options for the development of the situation are possible:
- If the price goes in the right direction, then the take profit automatically fixes the profit.
- If the price went the other way and reached the yellow line, then here you need to open another order in the same direction as the first one. Moreover, the take profit for both deals is moved to the level of the white line.
Pros and cons of the Forex Goiler indicator
This indicator has been tested on large historical data, so there is no reason to doubt its accuracy. However, it is better to use not the basic version, but the improved version shown in the figure.
It should be noted that traders quite often leave positive reviews about the Goiler tool. Moreover, they highlight several advantages:
- the levels that the indicator builds remain unchanged throughout the day (i.e. they are not redrawn);
- signals of sufficiently high accuracy;
- the indicator is easy to use and does not need to be adjusted.
Of the shortcomings, only one drawback is distinguished. It is associated with the fact that Goiler’s lines are often located so far away that it is unrealistic to open a trade or take profit at such distances. Therefore, you have to correct them manually according to the example described above.
For example, this graph shows that the levels are located at obviously long distances. At the same time, one should enter the market exactly at the level of white. Moreover, since it lies above the light green line, a deal should only be opened for SELL.
Further, the stop loss can be placed not on the red line (which is clearly far away), but on the yellow line. And it is allowed to take profit at the light green level. Moreover, a second take profit target can be set on the blue line. In this case, 2 orders are opened at once, thereby distributing risks.
We also recommend that you study the best forex profit indicators, which we wrote about earlier. Among them are tools such as Equity Virtual, Iprofit Custom, History Info and others.
How to use Forex Goiler effectively
The indicator is completely self-sufficient, i.e. it can also be used individually. But it is best to combine with other technical tools, for example:
- price levels of resistance and support;
- Fibonacci lines.
You need to trade only during a trend, because if the price is flat (i.e. moves in a narrow range), the indicator will give quite a lot of false signals. Another rule is not to open trades half an hour before and after the release of important economic events. Also, do not trade on the first (Monday) and last (Friday). At this time, trends are unstable, the price may “stall”. Therefore, it is better to work from Tuesday to Thursday inclusive.
Finally, it is equally important to follow the rules of money management. The size of each transaction should not exceed 2-3% of the deposit amount. This is a general rule that applies to any trading system.
The Forex Goiler indicator is suitable for trading on any currency pair from the Forex Major category. This is a fairly effective and at the same time simple tool. It can be included in the arsenal of both experienced and novice traders.
We also recommend that you study the Heiken Ashi indicator, which perfectly filters out market noise. It can be used instead of Japanese candlestick charts.
Watch an additional video on the topic of publication – Forex Goiler Indicator Applications