Naked Forex Big Shadow

Big Shadow Indicator is a pattern recognition indicator for Forex and Binary Options.

The Big Shadow is an enhanced pattern of the popular engulfing candle.

The Big Shadow pattern is very effective and is very simple to trade.

The strategy that comes with the Big Shadow is purely based on price action.

Inputs of the indicator are:

• Distance: distance in pixel relative to top or bottom of candle to display the arrow symbol
• Usealerts (true/false): to enable alerts
• Popalerts (true/false): to enable alerts of type Popup window
• Emailalerts (true/false): to enable alerts of type Email
• PushAlers (true/false): to enable alerts of type Push Notification
• Soundalerts (true/false): to enable alerts of type Sound
• SoundFile: file to be used for sound alerts

Trading rules:

• For BUY: wait for a bullish Big Shadow to print on a support zone after a down trend. Wait for price to break high of the Big Shadow candle (5 pips above the high for H1 and higher time frames). Immediately enter in the trade once high is broken. You also can use a BUY STOP order placed 5 pips above the high of the candle (plus spread). Stop Loss should be placed below the low of the Big Shadow candle. If order is not triggered in the next candle then trade is invalidated and should be canceled.
• For SELL: wait for a bearish Big Shadow to print on resistance zone after an up trend. Wait for price to break the low of the Big Shadow candle (5 pips below the low for H1 and higher time frames). Immediately enter in the trade once low is broken. You also can use a SELL STOP order place 5 pips below the low of the candle. Stop Loss should be placed above the high of the Big Shadow candle. If order is not triggered in the next candle then trade is invalidated and should be canceled.

To draw the support and resistance levels to trade with the Big Shadow, you can use the Fx Levels indicator : https://www.mql5.com/en/market/product/22547

We also offer the Naked Forex Kangaroo Tail indicator that might interest you: https://www.mql5.com/en/market/product/22734

The Big Shadow indicator can be used with any time frame.

The Big Shadow indicator can be used with any class of asset: Forex, Binary Options, Futures, Commodities, Stocks.