Today we will discuss a momentum indicator designed by Martin Pring. It is known as the Prings Special K indicator. Indicators are technical tools that help traders get better results.
Prepare your chart
First, you should log in to your IQ Option account. After you decide what financial instrument you are going to trade during the session, click on the indicators icon. You will find it on the left side of the platform. Go to the Momentum group of indicators and then find the one you need. In our case, this will be the Special K.
Prings Special K indicator basics
With the Prings Special K indicator, a trader will be able to recognise trend reversal and enter the trade at the right time to get the best profits.
The Special K is an indicator that combines multiple time frames, short-term, intermediate and long-term, into a complete series. Different weighted averages are taken in calculations of the Prings Special K. They were selected throughout many years of market analysis.
As it is demonstrated in the exemplary chart below, the peaks and troughs of the price come a little bit earlier than in the indicator's window. The Special K is a lagging indicator.
It plots around the line with the value of 0. The market is considered to be bullish when the Prings Special K moves above it and bearish when the indicator stays below the 0 line.
Trading strategy based on the Prings Special K indicator
We have the Special K attached to the chart. Now, we are going to add the Exponential Moving Average with a period of 100.
Opening long position with Special K
Observe the EMA100 first. You are waiting for the moment the price crosses above it. Now check the Prings Special K indicator. It should rise above the 0 line. This is a good moment to go long.
Opening short position with Special K
To open short trade, two conditions should be met. The price should cross below the EMA100 and at the same time, the Special K indicator falls below the 0 line. You can sell now.
The Prings Special K is an indicator that moves roughly at the same time as the price. It helps to identify primary trend reversals pretty fast and discover buying and selling opportunities.
Martin Pring's indicator joins short-term, intermediate and long-term velocity in one complete series. You can catch even smaller trends with it.
Use the strategy I have presented today in the IQ Option demo account. It is available at no cost at all. Practice there until you get to know the Prings Special K indicator well. After that move to the live account and make real profits.
I encourage you to share your thoughts with us in the comments section below. I would be happy to hear from you.
Best of luck!
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