Cayman Indicator

Published:24 April 2019 Updated:4 January 2024

Every experienced trader knows that the big players have their own rules forex trading. Usually they use the crowd as a conduit and lure small market participants into their traps. This happens when a market maker needs to enter or exit the market by covering a high volume position. In other words, he creates liquidity for himself by manipulating the opinion of the majority. What conclusion can we draw? It’s right, to be on the side of the majority in Forex is fraught with big losses. A reasonable question arises, how to determine the mood among traders? For this purpose the following tool was created forex indicator “Cayman”, which shows which direction for transactions is preferred by most traders.

Cayman indicator

Applying this information, which is provided by the developer of the indicator – AMARKETSThe market will reach the oversold/oversold zone, which will precede the reversal. “Cayman, unlike. traditional oscillators for forexThe “Balance of power” is an accurate indication of the balance of power at the current moment, because it does not observe the price, but is based on real data.

 

How to trade against the crowd

Those who are new to sentiment indicators and, in particular, to the “Cayman” indicator, usually do not understand how they can be used in practice to unmistakably recognize when the trend is not going to stop and when it is ready for a reversal.

When studying the indicator, simple truths should be taken into account:

  • If demand exceeds supply, the price will rise in any market;
  • If supply exceeds demand, the price will fall;
  • Market makers skillfully manage the price;
  • There is no such thing as everyone buying and selling and making money all the time.

How to trade against the crowd in forex

We can also add a few words for beginners. Take into account that the market maker, fixing profits, opens orders against the market. To do that he tries to lure in as many small traders as possible, makes them believe that the movement will continue, and then he simply closes his positions.

This situation occurs at the highs, when the level is broken or a new maximum value is updated, resulting in the formation of large Japanese candlesand it appears that there is no danger to open positions. Therefore, a trader using the Kaiman indicator can understand in advance when there are a lot of bulls or bears in the market, realizing that this is when the market maker will come back into play and start to “shake out the extra passengers”.

At the same time, Kaiman can show a situation where buyers and sellers are equal. Often, this happens during a flat, and in such a scenario, it is better to wait out or trade from the borders of the sideways corridor.

So, the indicator developed by Ammarkets is quite a useful tool that allows you to filter the signals and focus on the realities of the market.

 

Optimizing the Cayman indicator

Since the developer of the indicator is the company AMarkets (go online), then in order to use it you need to Open an account with a broker. The indicator can be used in the web terminal and on the MT4 terminal.

Mastering the trading algorithm is easy. The process is often not very difficult even for beginners who have no experience using similar indicators. There are no parameters that must be optimized. You can only choose the thickness of the basic curve of the algorithm.

The indicator is displayed in the form of a curve, which is located in a separate window under the price level. In addition to the curve in a separate window you can see two important levels: 70 and 30. These levels are needed to identify the current ratio of buyers/sellers.

Optimizing the indicator

If the curve reaches 70, it indicates that most speculators create buy positions, i.e., the market is overbought and there is a high probability that the trend will reverse.

If the curve reaches 30, it indicates that there are more bears in the market. It indicates an oversold and imminent reversal of the trend in the opposite direction. Recommended article on anti-trend trading.

 

Where can I find the Cayman indicator

The indicator can be found in the personal cabinet of the trader, who is a client of AMarket. There are several versions of the indicator:

  • Online version
  • Indicator for MT4 trading platform.

The company has also developed the “Cayman” advisor. Once the indicator is installed in the terminal, it becomes more convenient to use. However, for this, it is required to open a real account and make a deposit.

It is recommended to use this indicator as an auxiliary or together with other analysis methods. Combined use of the Kaiman indicator with other methods will enable traders to significantly improve their trading.

To summarize the above

Indicator “Cayman” is an effective algorithm that allows you to accurately determine the mood of the market crowd at the moment, which affects the results of the trade positively.

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