Float Indicator MT4 | MT5

The Float is a trend-following indicator that analyzes the previous trend to provide accurate insights into the current market direction. When applying this indicator to the MetaTrader chart, it helps traders identify the start and the end of a trend, enabling them to spot trend continuation and potential reversals, and set their TP and SL levels with the aid of the Fibonacci and DiNapoli retracements. It also displays the duration of the previous trend and how long ago the current high and low were detected. 

With all these features provided by this indicator, and depending on the current situation of the market, traders can follow one of these strategies: 

• Reversal trading:

- When the previous bullish trend ends, it may indicate a potential bearish reversal.

- When the previous bearish trend ended, it signaled a potential bullish reversal.

•  Trend continuation: 

- During an uptrend, and the price breaks above the last high, with a high volume, it may signal a continuation of the bullish momentum.

- During a downtrend, and the price breaks below the last low, alongside high volume, it may suggest a continuation of the bearish momentum.

• Stop-Loss and Take-Profit Placement:

- During a downtrend, set the SL above the last high of the previous uptrend and put the TP target depending on the Fibonacci and DiNapoli retracements.

- During an uptrend, set the SL below the last low of the previous downtrend and put the TP target depending on the Fibonacci and DiNapoli retracements.

This complex indicator adjusts to price movements in real-time trading. Therefore, traders are advised to wait until the trend concludes and confirm either a reversal or continuation before entering the market.

To help traders master the use of the Float indicator, I will present two trading examples and explain how to make profitable decisions.

In the EURCHF Daily chart example on MetaTrader 4, toward the end of the downtrend, the indicator displays the last high and low along with the trend's closure, suggesting a potential bullish reversal. As the price forms bullish candles and crosses above the Dinap0 line, it confirms the beginning of the uptrend. Traders, in this case, should set their SL below the last low and their TP depending on their risk-reward ratio, targeting the 38.2% Fibonacci retracement level or even the Dinap2 line.

In the USDJPY M30 chart example on MetaTrader 5, near the uptrend's end, the Float indicator displays the last low and high alongside the trend's closure, suggesting a potential bearish reversal. As the price forms bearish candles and crosses below the Dinap5 line, it signals the start of the bearish movement. Traders, in this situation, should set their SL above the last high and their TP depending as well on their risk-reward ratio, targeting for example the 61.8% Fibonacci retracement or even the Dinap3 line.

To make the best trade decisions using this indicator, it is recommended that traders should enter the market, whether long or short, only after confirming a trend reversal or continuation, to avoid false signals.