>The PCI Indicator (PERCENTAGE CHANCE INDICATOR)

• This excellent indicator can only be used for the Forex market. It has specific parameters that are ideal for the volatility of spot Forex.

• The PCI can be used on any time interval:


• The PCI is a leading indicator and not a lagging indicator.

• The main purpose of the PCI Indicator is to the help the trader understanding the probability of market direction.

• The PCI monitors price movement (trend) and the probability of trend reversal.

• It is very important that the trader understand that there is no indicator that offers a 100% success rate, but the PCI has an extremely high rate of profitable signals.

• The key to success is learning to interpret the indicator along with other technical tools: Candlestick Charting, chart patterns of trend continuation and reversal, and fundamental events
.
• The PCI Indicator can become a very helpful tool because it confirms when the market is in an up trend, downtrend, or bracketed market.

More Specifics on the PCI Indicator

• The PCI Indicator is made up of five lines. This technical indicator estimates the probability of market direction by suggesting Bid or Ask positions.

• Let’s look at the essay on the PCI Indicator by InfoTech. Look at the bottom of the first page at the graph of the PCI chart plotting.

• Two Dotted Lines: There are 2 dotted lines on the chart – one at the top and one at the bottom. These dotted lines indicate the 0% to 100% boundaries of the indicator.

• The Black Line: There is a horizontal, fixed line that is positioned at 50% of the scale. This line is a filter or potential signal line that does not move.

• The Pink and Green trading signal lines move back and forth across the black filter line.

• The Pink Line: Is a moving average line that plots the overall longer-term direction of the market trend. It is a line that moves up or down, slowly heading in the direction of the overall trend.

To read the full report: PCI