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Purple Extreme MT4 – Innovative indicator from Purple Trading
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Purple Extreme MT4 – Innovative indicator from Purple Trading

created David BurdaSEPTEMBER 22, 2020

We have just finished test of indicators developed by Trading Central. We are not slowing down and this time an innovative indicator developed by a group of specialists from Purple Trading – Purple Extreme for the MetaTrader 4 platform.

The company was established in 2016 as a result of a merger of two companies - Purple Technology sro and Investment Limited. The broker is authorized to provide investment services throughout the European Union, and its headquarters is in Cyprus, although the broker itself comes from the Czech Republic. Operating in the STP model (Straight Through Processing) have a wide range of services and investment tools, focusing on transparency, conflict-free and support for traders in every matter related to trading. Can one of their creations - Purple Extreme - really help? We check!

Proprietary indicators Purple Trading

Purple Trading offers access to four proprietary indicators, but access to three of them is limited. Only the Purple Extreme indicator is publicly available and we can install it on the MetaTrader 4 platform, regardless of which broker we use. We can use the other tools when we have an account (real or demo) in Purple Trading.

Purple Extreme MT4 - structure and operation

The creators of the indicator argue that Purple Extreme has been designed to withstand the most extreme situations on the market. This allows the trader to use them to collect as much information as possible. It is also to provide users with maximum transparency and simplicity in its operation. And indeed - it is easy to use, legible and shows signals clearly. Below we present all the parameters and how to interpret them.

FIG1 purple extreme - purple trading

The Purple Extreme indicator is based on four colors, thanks to which it indicates the moment of buying or selling a given item:

  • Yellow - price line color,
  • Green - if the price level is in this zone, it indicates a bought market and the probability of a return and downward movement,
  • Red - the level of prices in this area signals a strongly oversold market and the possibility of a return and upward movement,
  • Black -   it is a neutral zone where the relationship between buyers and sellers is balanced. The zero line runs in the middle of this zone. If this line is exceeded, there is an advantage for buyers or sellers depending on the direction.

The overbought zone starts at 70, and the sell-off zone starts at 70. However, most often it happens that the yellow price line is well below or above these values. They are around 100 or -100 respectively. This is exactly what creates the best signal to buy or sell. These conditions occur at practically every time interval.  As we know, there are indicators that work better at lower time intervals but fail at higher intervals or vice versa. Purple Extreme delivers the signals equally, so it can be used for both scalping strategies and longer trends.

Below we see example situations in the chart EUR / USD - low M1 interval and much higher H1. It is easy to notice that at the levels described above, the price clearly changes direction.

FIG2 eurusd

EUR/USD chart, M1 interval. Source: MT4 Purple Trading.

 

FIG3 eurusd purple trading

EUR/USD chart, H1 interval. Source: MT4 Purple Trading.

Summation

Everyone, even the less experienced trader, knows that there are no perfect indicators. This also applies to Purple Extreme. Rather, one should not rely solely on him. This does not mean, however, that by using it we will not get a good insight into the current market situation. It is definitely flexible and we can use it with other indicators. Getting an effective configuration will take time because we have to check for ourselves how consistent the signals are.

If someone is looking for new solutions and wants to improve their methodology in trading, we recommend downloading and checking the Purple Extreme indicator, as it may be useful.

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About the Author
David Burda
An active trader on the Forex market since 2017, specializing in the currency and commodity markets. He considers highly effective technical analysis combined with simple investment tools. Privately, a fan of spending free time actively.