This article will explain how the cTrader PRC Signal Indicator calculates the trend reversal signals and sends instant alert messages.
Getting Started
If you have already installed the cTrader PRC Signals cBot and configured your parameter settings, you can go ahead and start it, you will notice that the PRC indicator is not shown on the chart, this is because the PRC Signals cBot uses the indicator in its memory, so it does not need to display it. You will need to manually add the indicator to the chart so you can see what is going on as well as trade manually on the signals.
Important - Make sure that the settings for the PRC indicator that you use in your PRC Signals cBot match the settings for the PRC Indicator that you added to the chart.
What Causes The Trade Signals?
You may get a little confused as to why a signal did not happen on lower timeframes, this is due to the bid/ask spread, if you use a 1-minute chart for example then you will be able to see both the bid and ask price lines, read below for details on how we use the bid and ask for signals. The main reason is that your entry alert signal takes into account the spread.
Bullish Alert
When the Ask price of the symbol is less than the lower inner band of the Polynomial Regression Channel then a bullish alert event occurs. If the Calculate OnBar setting is set to YES, then the robot will wait until the candle (bar) closes before checking again if the price has breached the zone, this helps reduce false signals.
What is the Bid/Ask Spread?
The bid-ask spread is simply the difference between the price at which you can buy an instrument (symbol) and the price at which you can sell it.
When Are The Message Alerts Sent?
The alerts for trade signals are only sent when the symbol price breaches either the upper or lower band of the channel if a bullish alert event is fired then it will only happen once and can only be reset when a bearish alert event is fired. So each time the price bounces between the upper and lower channel zones both bullish and bearish alerts will be sent via the messaging services you have chosen.
What Timeframes Work Best?
Due to the fact that this is a signal provider tool, low timeframes of 5-minutes or less will not work so well, unless you just want a pop-up message on your desktop so you can quickly open the chart in question and manage your trades. We found that for timeframes of 1-hour and above the instant messaging works very well due to the fact that you may wish to use this signal with other signals to manage your daily trades when you either get back to your charts or via your mobile app.