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.
Pros and Cons of Prings Special K Indicator
- 👍 Combines multiple timeframes for more accurate analysis.
- 👍 Helps identify trend reversals to catch potential trading opportunities.
- 👍 Can be used in conjunction with other technical tools for improved results.
- 👎 Lagging indicator, meaning it might produce late signals.
- 👎 Not suitable for all trading styles or timeframes.
|Prings Special K Indicator Settings
|Combines different weighted averages for short-term, intermediate, and long-term analysis.
|Indicator moves above the line for bullish signals and below for bearish signals.
|Can be used with other technical tools such as EMA100 for improved trading signals.
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!
Frequently Asked Questions
- ❓ What is the Prings Special K indicator?
It is a momentum indicator designed by Martin Pring that combines short-term, intermediate, and long-term timeframes into a complete series to help traders identify trend reversals and improve their trading results.
- ❓ How does the Prings Special K indicator work?
The indicator combines different weighted averages of multiple timeframes to create a more accurate representation of market trends. The market is considered bullish when the indicator moves above the zero line and bearish when it moves below the zero line.
- ❓ Is the Prings Special K indicator suitable for all trading styles?
No, the Prings Special K indicator is a lagging indicator and might not be suitable for all trading styles or timeframes. However, it can be an effective tool for those looking to identify trend reversals and improve their trading results.
- ❓ How can I use the Prings Special K indicator in my trading strategy?
Practice using the Prings Special K indicator in a demo account before implementing it in your live trading strategy. You can also combine it with other technical tools, such as EMA100, for improved results.
- ❓ Where can I learn more about the Prings Special K indicator?
There are various online resources, including tutorials, articles, and forums, where you can learn more about the Prings Special K indicator and how to use it effectively in your trading strategy.
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