Sunrise indicator is a trend indicator based on moving averageThe "Support and Resistance Levels" are combined with the Support and Resistance Levels.
A change in the color of the moving average indicates a change in the direction of price movement:
- from blue to purple - the trend has changed from upward to downward;
- from purple to blue - the trend has changed from downward to upward.
Using the Sunrise Indicator in Trading
- A signal to sell would be a change in color of the moving average from blue to purple in the resistance zone, indicated by the purple lines.
- A buy signal would be a change in color of the moving average from purple to blue in the support zone indicated by the blue lines.
The disadvantage of the Sunrise indicator, as well as all indicators based on moving averages, is its lag. According to ForTrader.org experts, Sunrise indicator cannot be used as a self-sufficient source of trading signals. It should be used in complex with filtering indicators of oscillator type.
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