Mastering the Sidus Indicator for MetaTrader 5: A Trader's Guide

Author:

GwadaTradeBoy

The Sidus Indicator is rooted in the classic Sidus trading method, designed to pinpoint market entry opportunities. If you’re looking to streamline your trading approach, this could be the tool for you.

Understanding the Sidus Method:

One of the standout features of the Sidus Method is its simplicity; you won’t need to clutter your charts with extra filters. While losses can occur, they aren't frequent. This approach makes Forex trading more accessible and profitable, allowing traders to easily identify entry points for their positions.

Main Parameters of the Sidus Method:

• Currency Pairs: Best suited for EUR/GBP and EUR/USD, though other pairs can be tested.
• Time Frames: Ideal on the H1 chart, but M30 can be used with caution due to a higher risk of false signals.
• Exponential Moving Averages (EMA): Utilize the 18 EMA and 28 EMA.
• Weighted Moving Averages (WMA): Use the 5 WMA and 8 WMA.

The 18 EMA and 28 EMA create a tunnel effect on the chart, helping you recognize the beginnings and ends of significant trends. Meanwhile, the 5 WMA and 8 WMA will guide your entry points and assess the strength of short-term trends.

Market Entry Signals with the Sidus Method:

• Buy Position: Open when the 5 WMA and 8 WMA cross upwards through the tunnel. A stronger signal occurs if the 5 WMA also crosses above the 8 WMA.
• Sell Position: Open when the 5 WMA and 8 WMA cross downwards through the tunnel. Again, a strong signal is present if the 5 WMA crosses below the 8 WMA.

Exit Signals According to the Sidus Method:

• Buy Signal: Close your position when the price peaks and the 5 WMA dips below the 8 WMA.
• Sell Signal: Close your position when the price bottoms out and the 5 WMA climbs above the 8 WMA.

Additionally, always consider closing your position if the tunnel borders start to overlap or converge into one line. This is a strong indication that a trend reversal might be on the horizon. Keep your eyes peeled if the 5 WMA and 8 WMA are approaching the tunnel; while it’s fine if they haven’t crossed yet, it’s usually the first sign that a change may come soon. Be prepared to act!

The Sidus Indicator first hit the scene in MQL4 and was published on CodeBase at mql4.com back on October 25, 2007.