Why indicators are redrawn |
The advantage of long-term strategies is to smooth out factors such as lagging, redrawing, price noise, slippage. But the desire of traders to get everything and as quickly as possible makes them work with short timeframes, where all these problems hinder the implementation of the strategy. It happens that the candlestick analysis shows an excellent entry point, the moving average or the oscillator are in the right zones, the trader opens a position at a trend reversal and … loses money. The candlestick is redrawn, the trend continues to move instead of a reversal. At such moments, mistrust arises in the broker and trading in general. And if in 50% of cases it is the broker’s fault, then in 50% of cases the problem is not with him. Recommended Forex indicators without redrawing will not solve the problem either.
Forex indicators without redrawing: how to minimize risks
The classic mistake of a novice trader is not understanding the principles of the over-the-counter and interbank markets. At the head of trading is the price of an asset, which is formed by supply and demand. Price quotes are transmitted by suppliers to brokers, who transmit them to the trader (to the platform).
Technical indicators are a display of the mathematical formulas underlying their code. Receiving quotes, the indicator displays on the screen certain patterns for the past and current periods. Since it takes time to transfer data from suppliers before displaying a graph (a difference of a fraction of a second is enough), delays occur. For a similar reason, redrawing occurs: if the price changes its direction faster than the data on quotes reaches the trader, the chart will be automatically redrawn in the platform. On the Internet there are Forex indicators without redrawing, the formula of which is based on the averaging of price values. In practice, it is almost impossible to completely eliminate this problem.
How to reduce the risks of losses from redrawing Forex indicators:
- follow the economic calendar and do not enter the market on the news. The volatility, the rate of price change at this moment is enormous, there are strong institutional investors in the game, who will take down stops and orders of novice traders in a matter of minutes;
- try to avoid trading in a flat when there are no strong players on the market and the price jerks from side to side without a visible trend;
- start with cent accounts. The demo and the real market are very different. Therefore, after the demo account, you first need to run the strategy on “cents”;
- do not strive for quick money, choose medium time frames. Only being confident in your abilities, go to M1-M5;
- use arrow indicators Forex without redrawing. This is not a panacea, but it partially solves the problem.
The speed of the platform, broker’s servers and data transfer is also of great importance. The slower the speed, the more often the redraw will be. Use scripts to delete temporary files, to check the broker’s honesty compare its quotes with TradingView quotes. We hope this article was helpful to you. Leave your opinion in the comments!