The indicator of the dynamic zone is a tool of technical analysis, which refers to such standard and the traditional robot as the levels of support and resistance. That's why, before you start using this great robot, you need to master perfectly the lines of support and resistance. It is the essential trading instrument, from which your journey to the world of trading should start. It is used in trading by almost all traders of different levels of proficiency in trading.
The advantages and disadvantages of the zone indicator
The dynamic levels are different from the classic horizontal lines of support and resistance because they are always changing and correcting, which can be understandable from the very title of these levels. Unlike the dynamic lines, the classic lines of support and resistance differ, being stable and static. Thanks to the dynamic zones, it is much easier to monitor the trend of price changes of a financial instrument, as it takes into account the current situation in the world market, but not only the historical statistics.
If you don’t have enough experience in building the lines of support and resistance on your own, there are some auxiliary tools, which will help you. For example, one of these robots is the Zone indicator, which is building the levels of support and resistance instead of you. Also, the tool shows the number of times the price tried to break through the level. This information will help you to predict the price changes. You can configure the robot for yourself or leave the standard settings. With the standard configuration, you don’t lose anything. They are already set on the levels, which are most often used by the professional traders. This assistant will complement any trading strategy and make your trading signals more accurate. To download the Zone trading robot, you need to visit the MTDownloads website and select the right tool for technical analysis for free.
This indicator, like any other, has its drawbacks:
- Redrawing, which can be noticed on the wide ranges of price movements;
- Timeframe, which is better to choose from half an hour and higher, since this indicator gives a lot of false signals on short time intervals. That's why it can’t be used in such a trading strategy as scalping;
- This indicator provides signals only with other instruments of technical analysis.
The disadvantages mentioned above are insignificant so that anyone can use this indicator in trading. Most often it is used by fans of such a strategy as a breakdown and a rebound. You can quickly master this strategy, even having a small amount of knowledge of the financial sphere.
The indicator has a very convenient function of notifications. You can receive signals instantly by any convenient way for you (for example, on your email address). That’s how you will always be aware of when it is better to open and to close the transactions.
The indicator of dynamic zones on binary options
The tool of dynamic zones is used not only for trading in the Forex market but also for such a relatively young type of trading, as binary options. Most traders on binary options use the Dynamic Zone Tool created by the existing tool of technical analysis, RSI. It collects data about the changes in the price of a financial instrument and subsequently converts them to a chart, thanks to which you can see a particular pattern of the price movements, which 's hard to see without of using a robot. Thanks to the received information, it is possible to make the adjustments to the trading strategy and choose the most favorable financial instruments and time frames for trading.
Use of dynamic levels with other indicators
The levels can be combined with almost all existing trading indicators. However, if you are looking for an ideal indicator, which can be combined with the dynamic levels of support and resistance, you will not find better than the moving averages. This tandem will bring you only the best results in your trading. Moreover, such strategy is a classical one, and a safe one, because many traders tested it. If you are just a beginning trader, you should master such two tools of technical analysis, as the levels of support and resistance and the moving averages, as it isn’t so difficult to combine them.
All in all, you should at least try to trade by the dynamic levels. The level of your professionalism in technical analysis will grow significantly. You can download this indicator for free on the website MTDownloads now.