Forex Trend Indicator

Forex Trend Indicator

Forex Trend indicator spots potential trend-reversal positions of the price on MT4 charts. Suits forex & stock trading. Works on MTF chart scalping & intraday trading.

The Forex Trend Indicator is an MT4 trend oscillator that closely monitors the changes in recent market momentums and generates precise buy-sell signals accordingly. The simple demonstration of current trend status and consistency in delivering trend signals are the prominent advantages of this indicator.

While backtesting the Forex Trend, we’ve found this indicator equally effective in both shorter and longer timeframes. It means you can apply it for both day and intraday trading simultaneously. Also, it is applicable for all types of trading assets, including forex currency pairs, stocks, metals, and cryptocurrencies.

This guide explains how the indicator works in MT4 and how to apply it for making the most of your daily trading activities.

How to use the Forex Trend Indicator in MT4 for identifying precise trend-following buy/sell signals
The Forex Trend indicator applies the simplest technique for demonstrating the trend signals, making it easier for beginners to assess the trend conditions. Here, you only need to be able to distinguish between blue and red colors for determining the current market trend.

The blue vertical bars in the indicator window signal an uptrend condition. On the other hand, the red bars indicate a downtrend market. Therefore, whenever the Forex Trend indicator changes its bar’s color, we consider it a trend-reversal moment.

The longer the indicator keeps plotting the same color bars, the stronger the trend strength is. For instance, the indicator shows more than five blue bars in a row. It indicates the market is on a solid bullish run and it’s time to look for fresh long opportunities.

However, signals from Forex Trend Indicator may not always work, especially during choppy or overly volatile market conditions. So, for better safety, you can use additional price-action tools or trend-following indicators alongside the indicator.

A few tips
In the above example, we’ve added a 50 EMA (Exponential Moving Average) on the main chart window for filtering the buy/sell signals of the Forex Trend indicator. We’ll only accept a buy signal when the price stays above the 50 EMA level according to this strategy. Conversely, we’ll consider a sell signal if the indicator plots red bars and the price moves below the EMA at the same time.

Try holding the position once you activate an order until the Forex Trend signals an opposite trend to your entry. For example, if you open a buy order, consider taking profits when the indicator displays red bars.

The EMA in the above chart is just an example showing how you can improve your decision-making by using an additional indicator with this indicator. Besides moving averages, you may also go for other trend-following MT4 tools.

Conclusion
The Forex Trend indicator is the best technical tool for examining the recent changes in market trends and the strength of the current momentum. Besides shorter timeframes, it also works well on daily, weekly, and even monthly charts. Therefore, traders looking for scalping, day trading, or intraday trading through MT4 may find Forex Trend as a useful technical assistant.