Custom Indicators to Improve Forex Trading

Economic

Summary:

Explore the world of custom indicators in Forex trading. Learn how to enhance your strategies, increase precision, and gain an edge using tailor-made technical tools.

The Forex market is known for its dynamic nature, requiring traders to adapt their strategies to ever-changing conditions. While standard indicators like Moving Averages and RSI are popular, they might not cater to every trader's unique needs. Enter custom indicators—tailor-made tools designed to give traders a competitive edge.

This article explores what custom indicators are, how they work, and how you can use them to improve your Forex trading outcomes.

What Are Custom Indicators?

Custom indicators are technical tools designed and programmed to analyze market data in unique ways. Unlike built-in indicators in platforms like MetaTrader 4/5, these indicators are often created to serve specific trading strategies or provide insights that standard tools might overlook.

They can range from simple tweaks of existing indicators to entirely new algorithms based on proprietary methods or trading ideas.

Why Use Custom Indicators?

Custom indicators provide several advantages:

Tailored Analysis: Adapt to specific strategies, timeframes, or asset classes.

Enhanced Precision: Improve entry and exit signals by filtering noise or focusing on unique patterns.

Uncommon Insights: Access data analysis not available in standard indicators.

Competitive Edge: Stand out in a market where many traders rely on similar tools.

Examples of Custom Indicators

Supply and Demand Zones

These indicators highlight key support and resistance areas based on historical price data. They are invaluable for traders who focus on reversal points.

Multi-Timeframe Indicators

Instead of switching between charts, these tools allow you to view higher or lower timeframe data on the same chart. For instance, you could track the daily RSI on an hourly chart.

Custom Oscillators

Oscillators like Stochastic or RSI can be customized to include non-standard smoothing techniques or dynamic overbought/oversold levels.

Volume Profile Indicators

These tools provide a detailed view of price levels with the most trading activity, helping traders identify significant areas of interest.

How to Use Custom Indicators Effectively

Define Your Goals

Before implementing a custom indicator, understand what you want to achieve. Are you looking for better entry points, clearer trend signals, or more robust risk management?

Backtest Thoroughly

Test the indicator on historical data to ensure its reliability and compatibility with your trading style.

Combine with Other Tools

Use custom indicators alongside standard tools or price action techniques for confirmation. For example, combine a custom trend indicator with Fibonacci retracement levels to validate potential reversal points.

Avoid Overloading

While it’s tempting to use multiple indicators, too many on a single chart can lead to analysis paralysis. Focus on tools that complement each other.

Developing Your Own Custom Indicator

If you have a unique trading idea, consider developing your own indicator. Platforms like MetaTrader allow you to code custom tools using MQL4/MQL5. Alternatively, you can hire a professional programmer to turn your concept into reality.

Risks of Using Custom Indicators

While custom indicators offer unique advantages, they come with risks:

Overfitting: Indicators fine-tuned for specific data may fail in live markets.

Dependency: Relying solely on indicators can lead to ignoring fundamental market dynamics.

Cost: Purchasing or developing custom tools can be expensive.

Conclusion

Custom indicators can revolutionize your Forex trading by providing unique insights tailored to your strategy. However, they are tools—not guarantees of success. The key lies in understanding their strengths and limitations while integrating them thoughtfully into your trading plan.

Whether you’re tweaking an existing tool or building one from scratch, custom indicators can help you navigate the complexities of Forex trading with confidence and precision.

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

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Glendon

Economic

In the fast-paced world of trading, every second counts. MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are powerful trading platforms, and knowing their keyboard shortcuts can significantly boost your efficiency and precision. This guide delves into the most useful shortcuts, along with practical tips to incorporate them into your trading workflow.

Why Use Keyboard Shortcuts in MetaTrader?

Keyboard shortcuts provide several advantages:

Speed: Execute trades and navigate quickly without relying on a mouse.

Accuracy: Minimize errors by automating repetitive actions.

Focus: Keep your attention on the charts instead of searching for buttons or menus.Whether you're a scalper or a long-term trader, mastering these shortcuts will help you stay ahead in volatile markets.

Essential MetaTrader Keyboard Shortcuts

Chart Navigation and Display

F8: Open the chart properties menu to customize colors and settings.

Ctrl + G: Toggle the grid on or off for better visual clarity.

Ctrl + Y: Display or hide period separators to mark trading sessions.

- (Minus Key): Zoom out the chart for a broader view.

+ (Plus Key): Zoom in for more detailed analysis.

Page Up: Scroll the chart to the left for historical data.

Page Down: Scroll the chart to the right to return to the present.

Tip: Adjusting the chart's zoom and layout quickly helps adapt to different analysis styles, such as scalping or swing trading.

Order Placement and Management

F9: Open the order window for instant trade placement.

Ctrl + E: Enable or disable Expert Advisors (EAs).

Ctrl + F: Activate the crosshair tool for precise point-to-point measurements.

Alt + W: Open the list of open charts to switch between assets.

Ctrl + T: Display or hide the terminal window for monitoring trades and account details.

Pro Tip: Use the crosshair tool to measure the distance (in pips) between key levels before placing orders.

Timeframe Adjustments

Alt + 1: Switch to bar chart view for simplicity.

Alt + 2: Switch to candlestick chart view, the most popular among traders.

Alt + 3: Switch to line chart view for trend analysis.

Ctrl + F5: Cycle through multiple timeframes on the same chart.

Tip: Quickly toggling timeframes helps analyze trends from a macro and micro perspective.

Object and Indicator Management

Delete: Remove selected objects (e.g., trendlines or Fibonacci retracements).

Ctrl + B: Open the list of objects on the chart for quick edits.

Ctrl + I: Open the list of applied indicators for customization or removal.

Pro Tip: Regularly clean up unused objects and indicators to keep your charts clutter-free.

Miscellaneous Shortcuts

F11: Activate full-screen mode for an immersive analysis experience.

Ctrl + N: Open or hide the Navigator panel for quick access to accounts, indicators, and scripts.

Ctrl + O: Open the options menu for platform settings, including server configuration and trade preferences.

Tip: Use full-screen mode during major news events to focus entirely on price action and avoid distractions.

How to Practice and Master These Shortcuts

Start Small: Focus on a few shortcuts at a time and incorporate them into your daily trading routine.

Use Cheat Sheets: Print a list of the shortcuts and keep it handy until they become second nature.

Combine Shortcuts: Use combinations for repetitive tasks, like toggling the terminal window and placing orders.

Customize Your Workflow: MetaTrader allows some level of customization; arrange your workspace to complement your favorite shortcuts.

Conclusion

Keyboard shortcuts are more than just time-savers; they are essential tools for increasing efficiency and maintaining focus in your trading. By mastering these MetaTrader 4 and 5 shortcuts, you can reduce friction, execute trades faster, and analyze charts with ease. Start practicing these shortcuts today, and watch your trading workflow become smoother and more productive.

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

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Kevin Du

Central Bank

The Aussie was struggling at $0.6375, having tumbled 1% overnight to hit a fresh four-month low of $0.6363. Support is shaky at $0.6347, while resistance lies at a key chart level of 65 cents.

The kiwi dollar was flat at $0.5799, after diving 1.1% overnight to hit a one-year trough of $0.5789. Support is not far at 0.5771, and a break of that level would see it testing lows not seen since November 2022.

The Reserve Bank of Australia (RBA) kept interest rates unchanged at 4.35% on Tuesday, but softened its hawkish stance by dropping a previous reference for policy needing to stay restrictive.

Swaps now imply a 63% chance of a quarter-point cut at the next RBA meeting in February while fully pricing in two rate cuts by May next year.

“For AUD-USD, fundamental headwinds remain clear going into 2025,” said Lenny Jin, Global FX Strategist at HSBC. “We expect any rebound in AUD-USD this month to fade in early 2025.”

“More forceful fiscal policy support from China could help, but…structurally, China’s importance to the AUD may be declining, given limited spillover effect through the commodity demand channel.”

Australian dollar dives as RBA takes a dovish turn

With the RBA now watching data for clues on when it might begin the easing-cycle, the employment report due on Thursday is taking on more significance than usual. Forecasts are centred on an increase of 25,000 in new jobs in October, while the unemployment rate is expected to have ticked up to 4.2% from 4.1%.

The labour market has stayed surprisingly resilient, with the jobless rate budging little over the past six months. A surprisingly soft report could further increase the chance of a February rate cut.

Before that, RBA Deputy Governor Andrew Hauser is due to speak at 1800 local time (0700 GMT) on Wednesday about Australia and the global economy.

Local bonds pared some of the gains from Tuesday. Three-year Australian government bond futures fell 3 ticks to 96.258, pulling away from a two-month top of 96.30 hit after the RBA’s decision.

Ten-year bonds dropped 5 ticks to 95.80, also off from its two-month high of 95.85.

Source: Reuters

Risk Warnings and Disclaimers

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Saif

Central Bank

The Reserve Bank of Australia (“RBA”) concluded its December 2024 meeting by maintaining its official cash rate (“OCR”) at 4.35%, marking the ninth consecutive meeting and the thirteenth consecutive month at this level. This was not the headline, however – this is exactly what the market expected.

Despite the seemingly benign outcome, there were some massive moves in markets post-meeting, and equally large changes in the expectations surrounding the timing and magnitude of RBA interest rate cuts in 2025. A picture tells a thousand words, so let’s check out some of the moves the decision triggered across markets in charts:

Exhibit 1: Massive plunge in key risk-free market yield benchmarks

How much, and when the RBA Will cut Interest Rates in 2025_1

The benchmark for short term Australian government bond yields, the 2-Year bond, fell by 12 basis points to 3.77%. Markets effectively delivered half a typical interest rate cut (i.e., 0.25%) immediately following the December Board meeting.

Exhibit 2: Big drop in the Australian dollar

How much, and when the RBA Will cut Interest Rates in 2025_2

The Australian dollar fell 1%, reaching approximately 63.75 US cents, its lowest level in over a year. Currency values are all about relative risk-free returns across countries. If markets anticipate they will earn a lesser yield in Australia (because of increased official interest rate cuts) compared to the USA, they will sell down the Australian dollar in favour of the higher yielding US dollar.

Exhibit 3: Dip and draw in the Implied Yield Curve

How much, and when the RBA Will cut Interest Rates in 2025_3

The ASX 30 Day Interbank Cash Rate Futures Implied Yield Curve is a market proxy for the RBA’s OCR. The Yield Curve provides investors with a graphical representation of where the market is predicting the OCR will be down the track.

I have overlaid the December 10 Yield curve (light blue bars) over the December 9 curve (dark blue bars) to illustrate the change in market expectations for the timing and magnitude of RBA interest rate cuts both before and after the December Board meeting. I’ve also drawn on the schedule levels equating to the next 1.0% of 0.25% cuts.

Generally, the market has lowered its expected level of the OCR through the 18 month look-forward period. Where the light blue bars touch an interest rate cut level tells you when the market has fully factored in the relevant cut.

In terms of first cut timing, the curve has experienced the following notable changes:

The next RBA meeting is 5-6 February, the chance of an interest rate cut at this meeting has increased from 28% to 34%

March meeting cut probabilities increased from 60% to 72%

There is no meeting in April, but this is when the market is factoring the first rate cut (interpret this as hedging their bets between the March and May meetings!) The interesting item here is that the probability of a larger, 0.5% cut, increased from just 6% to 28%.

The second 0.25% rate cut has moved in from July to June.

The third 0.25% rate cut has moved in from December to September.

There was no fourth 0.25% rate cut in the Yield Curve’s look forward period ending May 2026, but there’s now a 98% probability it will occur in that month

In summary, markets believe the first RBA interest rate cut is a lock by May next year, but the probability of a surprise March cut has increased. Mortgage holders are still likely to get three 0.25% cuts in 2025, but they are likely to occur three months earlier by September. There is now a fourth cut in the mix by May 2026.

Why did markets react so vigorously to the December RBA meeting?

Here are the key takeaways from the December meeting statement and post-meeting press conference by Governor Michelle Bullock that caused the market to pivot so substantially:

Statement

Expressed "gaining some confidence that inflation is moving sustainably towards its target", this a departure from previous assertions about the necessity of maintaining restrictive policies.

Omitted earlier references to being vigilant against upside risks to inflation and the commitment to keeping policy sufficiently restrictive until confident of inflation's trajectory.

Added references to weakening Australian economic growth, "While underlying inflation is still high, other recent data on economic activity have been mixed, but on balance softer than expected in November", in particular citing the worse than expected September quarter GDP figures, noting it was "the slowest pace of growth since the early 1990s".

Added the statement: "Wage pressures have eased more than expected in the November SMP." – again, arguably dovish.

Replaced "But there are uncertainties" with "Some of the upside risks to inflation appear to have eased and while the level of aggregate demand still appears to be above the economy’s supply capacity, that gap continues to close."

Press conference

“Some indicators softening in line with our forecasts, that said, on balance, some data is a little softer than expected. This has given the Board some confidence that inflationary pressures are declining, but risks remain.”

Which data? “The national accounts data weren’t as strong as expected, the Wages Price Index came a little bit lower than what we thought it might be, inflation data were broadly in-line. It’s not only slowing as we’d like, it’s slowing a little-bit more and that’s positive for inflationary pressures…it’s giving us confidence we’re coming on our narrow forecast path.”

“Some of those risks to upside inflation have eased. We have noticed [the weaker data] and we do need to take a bit of a signal from that, but upside risks remain.”

In summary, the RBA's December meeting maintained the current cash rate but signaled a marked shift towards a more accommodative stance. Markets are now anticipating potential rate cuts to occur sooner and to a greater magnitude in early 2025. The news is arguably positive for mortgage holders, and also likely, for stocks which also tend to benefit from lower official interest rates.

If there is a group of losers out of the developments of the last 24-hours, it's likely to be those with cash in the bank. It might be time to think about locking in those higher deposit rates while you still can!

Source: Carl Capolingua

Risk Warnings and Disclaimers

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Warren Takunda

Onchain options protocol Derive says data shows Ethereum has less than a 10% chance of hitting the much-anticipated $5,000 mark by the end of 2024, despite significant inflows into spot Ether exchange-traded funds (ETFs) hinting at a looming “supply-side crisis.”

The probability that Ether will reach $5,000 by Dec. 27 “climbed to 16% at its peak but has recently adjusted down to just over 8%,” Derive head of research Sean Dawson said in a Dec. 10 markets report. Ethereum Has Less Than 10% Chance of Tapping $5K by Year-End, Says Derive_1

Ethereum Has Less Than 10% Chance of Tapping $5K by Year-End, Says Derive_1

Ether’s chances of reaching $5,000 by the end of the year have fallen by about 50%. Source: Derive.xyz

ETH needs a 37% jump from its current price of $3,669 to reach $5,000, CoinMarketCap shows.

Dawson added that “the trading of calls and puts for ETH is evenly distributed, suggesting a neutral market sentiment.”

“TradFi is gobbling up cheap ETH” — trader

Pseudonymous crypto trader CoinMamba holds a different view, saying in a Dec. 10 X post that their “target for ETH is still $5k by the end of this year.”

“Do what you will with that information,” they added. Ethereum Has Less Than 10% Chance of Tapping $5K by Year-End, Says Derive_2

Ether was trading at $3,661 at the time of publication. Source: CoinMarketCap

Meanwhile, in an X post on the same day, Ethereum contributor Eric Conner pointed to the $305 million in Ether ETF daily inflows on Dec. 10 as a signal that a “supply side crisis” is coming.

Ethereum educator Anthony Sassano added that “TradFi is gobbling up the cheap ETH.”

Of the $305 million in inflows, Fidelity Ethereum Fund accounted for $202.2 million, according to Farside data.

Ether new all-time high call within the week

This follows a Dec. 9 claim from Bankless podcast host Ryan Adams, who suggested that a new Ether all-time high “could happen” within the next week. Ether’s current all-time high is $4,878, reached in November 2021.

Meanwhile, pseudonymous crypto trader Pentoshi said in a Dec. 9 X post to his 830,900 followers that Ether “is having structural changes as well as the beginning of consistent and large ETF flows.”

They highlighted that ETH had its “highest weekly close of the year” and echoed Adams’ sentiment, suggesting a retest of its all-time high could happen sooner than many traders anticipate.

Source: Cointelegraph

Risk Warnings and Disclaimers

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ING

Economic

Central Bank

Inflation remains too hot for comfort

US core CPI in November has come in at 0.3% month-on-month, as expected, and headline has done likewise. The year-on-year headline rate ticks up to 2.7% from 2.6% while the annual core rate has remained at 3.3%. The details show housing looking a little more benign with owners' equivalent rent and primary rents coming in at a pleasing 0.2% MoM, apparel posting a similar increase and education and communication prices falling 0.4% MoM. The upside pressure largely came from vehicle prices with new vehicles rising 0.6% MoM and used vehicles jumping 2% MoM after a 2.7% increase in October. Most other components came in at around 0.3%.

US core CPI metrics

Sticky US Inflation Points to a More Cautious Fed in 2025_1

Fed to cut more cautiously from now on

This is the fourth consecutive 0.3% MoM print and as the chart above shows, the annual inflation rate has stalled at just above 3% for the past six months while the 3M annualised rate has picked up markedly since the summer. To be confident inflation will return to the 2% YoY target we need to see the MoM rate (blue bars) track at 0.17% MoM over time (the black line). It is simply too hot right now. That said, with PPI expected to post a 0.2% increase tomorrow we should be on course for a 0.2% MoM print for the Fed's favored inflation measure – the core PCE deflator – next week.

In terms of implication for policy, the jobs market is cooling and the Federal Reserve repeatedly acknowledges that monetary policy is still in restrictive territory. As such, the Fed appears happy to gradually move policy closer to the neutral level of around 3% and we expect another 25bp rate cut next week. However, the lack of meaningful progress on inflation means that in their summary of economic projections, officials are likely to signal just three rate cuts in 2025 versus the four they projected in September.

Source:ING

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

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Warren Takunda

Economic

Prime Minister Justin Trudeau said Canada “will respond” if U.S. President-elect Donald Trump imposes new tariffs on Canadian imports, and argued that retaliatory tariffs were successful when Trump put tariffs on Canadian steel and aluminum in 2018.

The comments on Monday were Trudeau’s strongest language yet in signaling his government is preparing retaliation if Trump follows through on his threat.

g Trudeau’s remarks, Trump repeated his jab about Canada being like a U.S. state in a post on his social media site. Canadian officials have downplayed the quip as teasing since Trump made the joke during a meal with Trudeau at his Mar-a-Lago resort on Nov. 29.

“It was a pleasure to have dinner the other night with Governor Justin Trudeau of the Great State of Canada,” Trump wrote on Truth Social. “I look forward to seeing the Governor again soon so that we may continue our in depth talks on Tariffs and Trade, the results of which will be truly spectacular for all!”

Days before the dinner, Trump said he would impose across-the-board 25 per cent tariffs on Canadian and Mexican imports on the first day of his presidency unless both countries crack down on the flow of migrants and fentanyl into the U.S.

“Let’s not kid ourselves in any way, shape or form: 25 per cent tariffs on everything going to the United States would be devastating for the Canadian economy,” said Trudeau on Monday, speaking to the Halifax Chamber of Commerce. But he said the tariffs would also raise costs on a wide range of goods the U.S. gets from Canada.

Canada will “respond to unfair tariffs in a number of ways, and we’re still looking at the right ways to respond, but our responses to the unfair steel and aluminum tariffs were what ended up lifting those tariffs last time,” he said.

Shortly after Trump announced the tariffs on Canadian steel and aluminum in the spring of 2018, Canada rolled out retaliatory tariffs on targeted, politically sensitive items such as “bourbon and Harley Davidsons and playing cards and Heinz ketchup,” Trudeau said.

The tariffs were “politically impactful to the president’s party and colleagues,” and that was how “we were able to punch back in a way that was actually felt by Americans,” Trudeau said.

Canadian officials have stressed that Canada is also a huge market for American businesses. “We are the biggest customer by far of U.S. exporters,” said Kirsten Hillman, Canada’s ambassador to the U.S., in a Bloomberg TV interview last week. She said 36 U.S. states count Canada as their biggest export market.

The Canadian prime minister cautioned that Trump should be taken seriously when he threatens to impose tariffs, but said history has shown Trump can have other motivations as well. “His approach will often be to challenge people, to destabilize a negotiating partner, to offer uncertainty and even sometimes a bit of chaos into the well-established hallways of democracies and institutions,” Trudeau said..

“One of the most important things for us to do is not to freak out, not to panic,” Trudeau said, arguing Canada will need a thoughtful and united approach to reach an agreement with Trump and avoid harming both economies.

However, he said managing the trade file is likely to be more difficult in Trump’s second term, despite the fact Canada, Mexico and the U.S. renegotiated the entire North American free trade pact in 2018.

“This time’s going to be different, it’s going to be a little more challenging,” Trudeau said. Trump and his inner circle are coming in with a much “clearer set of ideas of what they want to do right away than they had last time,” he said.

But he said he believes Canada can again find a “win-win” solution that works for citizens and businesses on both sides of the border.

Source: TheFinancialPost

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

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Custom Indicators to Improve Forex Trading

What Are Custom Indicators?

Why Use Custom Indicators?

Examples of Custom Indicators

Supply and Demand Zones

Multi-Timeframe Indicators

Custom Oscillators

Volume Profile Indicators

How to Use Custom Indicators Effectively

Define Your Goals

Backtest Thoroughly

Combine with Other Tools

Avoid Overloading

Developing Your Own Custom Indicator

Risks of Using Custom Indicators

Conclusion

Best Keyboard Shortcuts for MetaTrader 4/5

Why Use Keyboard Shortcuts in MetaTrader?

Essential MetaTrader Keyboard Shortcuts

Chart Navigation and Display

Order Placement and Management

Timeframe Adjustments

Object and Indicator Management

Miscellaneous Shortcuts

How to Practice and Master These Shortcuts

Conclusion

Australian Dollar Struggles, Bonds Trim Gains as Jobs Report Looms

Australian dollar dives as RBA takes a dovish turn

Source: Reuters

How much, and when the RBA Will cut Interest Rates in 2025

Exhibit 1: Massive plunge in key risk-free market yield benchmarks

Exhibit 2: Big drop in the Australian dollar

Exhibit 3: Dip and draw in the Implied Yield Curve

Why did markets react so vigorously to the December RBA meeting?

Source: Carl Capolingua

Ethereum Has Less Than 10% Chance of Tapping $5K by Year-End, Says Derive

Ether’s chances of reaching $5,000 by the end of the year have fallen by about 50%. Source: Derive.xyz

“TradFi is gobbling up cheap ETH” — trader

Ether was trading at $3,661 at the time of publication. Source: CoinMarketCap

Ether new all-time high call within the week

Source: Cointelegraph

Sticky US Inflation Points to a More Cautious Fed in 2025

Inflation remains too hot for comfort

US core CPI metrics

Fed to cut more cautiously from now on

Source:ING

Trudeau Says Canada 'Will Respond' if Trump Imposes 25% Tariffs

Source: TheFinancialPost

Risk Disclosure