What Is The Solar Wind Joy Indicator & How To Trade With It
Solar Wind Joy is a technical indicator comprised of bullish (green) zone and bearish (red) zone. It is an oscillator that attempts to forecast the trend reversal and also tells you the strength of trend. The Solar Wind Joy indicator can be used for trading forex, stocks, commodities, indices, cryptocurrencies and any other trading instrument that you can load in your trading platform.
What is Solar Wind Joy indicator?
The Solar Wind Joy indicator is a histogram forex trading indicator. It is displayed on the chart in a separate window. It gives a clear signal on the chart in first glance but it is not necessary that such signals are always working. There are two variations in the Solar Wind Joy indicator, repainting and non-repainting. The non-repainting indicator does not redraw and can help to give a clear picture of the trend.
It is useful to learn about the key features of the indicator in order to use it well. The Solar Wind Joy indicator helps to let you know the strength of buyers and sellers. The red bars of the histogram indicate that the sellers are in control while green bars of histogram show that the bulls are in control.
Solar Wind Joy indicator on chart
How to use Solar Wind Joy indicator?
The Solar Wind Joy indicator can be used in various ways like any other oscillator. The indicator is not only used for seeking trend signals but it is also used for exiting the trades based on strength of the trend. It can be used in following ways:
The zero line is a decisive level in the indicator. It tells you the existing trend and the extent of the trend. If the histogram bar is above the zero line, it shows green color and is considered a bullish trend. Here, we may look for a buying opportunity. Similarly, the red colored histogram bar shows that the trend is bearish and we may look for a selling opportunity.
Solar Wind Joy indicator zero line trading
You can use the extremes of the indicator histograms for exiting trades or even finding new trading opportunities as well. It is almost the same as using the oversold and overbought conditions. We can look for a selling opportunity when the green histograms are at extreme and then start declining. Similarly, we can look for buying opportunities when the red histograms start shrinking and the indicator line turns upward.
Using extremes of Solar Wind Joy indicator
Solar Wind Joy indicator trading strategy
We can combine the Solar Wind Joy indicator with any other confirmatory tool to trade. We are presenting a straightforward strategy that is standalone using the Solar Wind Joy indicator.
Solar Wind Joy indicator buy strategy
- The histogram bar should cross above the zero-line closing the green bar.
- Wait for the price bar to close bullish and then enter the trade.
- Place the stop-loss around the recent swing low.
- Exit when the green histogram bars start shrinking and the indicator line directs downward.
Solar Wind Joy indicator buy setup
Solar Wind Joy indicator sell strategy
- The histogram bar should cross below the zero-line closing the red bar.
- Wait for the price bar to close bearish and then enter the trade.
- Place the stop-loss around the recent swing high.
- Exit when the red histogram bars start shrinking and the indicator line directs upward.
Solar Wind Joy indicator sell setup
Solar Wind Joy indicator conclusion
The Solar Wind Joy indicator works the same way as any other oscillator. We can use it to trade or to determine the strength of a trend. Like any other indicator, the Solar Wind Joy indicator may also produce false signals that may require you to use additional indicators to filter them.
I would prefer to use the majority of technical indicators such as the Solar Wind Joy indicator on the 1-hour charts and above. I tend to find that these charts contain less market noise than the lower time frames and thus give more reliable signals for my forex trading strategies. This also means that I spend less time staring at charts and can also set alert notifications to let me know when price has reached certain levels or a particular indicator value has been reached.
The Solar Wind Joy indicator is just one indicator amongst thousands. I would not build a trading system alone, but rather combine with other technical indicators such as moving averages, Parabolic SAR, Stochastic Oscillator, RSI, ADX and price action analysis.
Of course, every trading system will generate false signals which is why money management is so important. I would personally be implementing sensible money management and only take traders that give me a favorable risk to reward ratio, ideally of at least 1:3. This means that one losing trade does not wipe out consecutive winners.
The methods of implementing the Solar Wind Joy indicator into a trading strategy that are outlined within this article are just ideas. I would always ensure that I have good money management, trading discipline and a trading plan when using any forex strategy.
Furthermore, I would combine multiple technical analysis, fundamental analysis, price action analysis and sentiment analysis to filter all entries. You should trade forex in a way that suits your own individual style, needs and goals.
If you would like to practice trading with the Solar Wind Joy indicator, you can open an account with a forex broker and download a trading platform. If you are looking for a forex broker, you may wish to view my best forex brokers for some inspiration.