The AML indicator is needed to filter the long-term trends on the currency instrument chart. It’s just a line that moves horizontally, in those moments when price fluctuations are insignificant.
Introduction to AML Technical Indicator
The broken line on the chart drawn by this indicator starts moving up or down, only after the price of the currency instrument has changed in one direction or another to a sufficiently large number of points. But this indicator is not completely trendy. Yes, it reacts to trends, but this does not mean that you need to immediately open a deal, you need to take into account one not unimportant moment, the feature of which is that this indicator reacts to the trend already started, and with each of its movements, the probability that it will soon be completed, and you will most likely receive a loss, not a profit.
In order to avoid this, this indicator should be used not to open trading positions, but to close them, that is, to install at its stop loss level and trailing stop. At the same time, after viewing a bit of the history of the chart, you will understand that in the trend this indicator always keeps from the chart at a “safe” distance, thus allowing you to keep the trading position as long as possible while getting the maximum profit for each transaction.
How to use AML Technical Indicator?
As mentioned above, this indicator should not be used to open orders directly, but to set the initial stop and trailing stop, so before you turn this indicator on your trading system, you must first select an indicator or indicators for which you will decide on the opening of a position.
All trading systems are divided into two large groups: trend trading systems and trading systems in the price channel or “channel” systems. But since this indicator was created in order to filter these channels, therefore, to develop a “channel” strategy, this indicator is not suitable. That is why this indicator will be useful for you if you are developing or planning to develop a trend trading strategy for which you, first of all, will need trend indicators that you can find by default in almost any trading terminal, including MetaTrader