Trend Intensity Index 1.3 Averages Indicator

Trend Intensity Index 1.3 Averages Indicator

Determine accurate trend intensity levels in all market sessions. Identify bullish & bearish market trends on MTF charts. Suits forex & stock trading strategies.

The Trend Intensity Index 1.3 Averages (MTF) is a technical MT4 indicator. It accurately determines the market bias and tracks the strength/weaknesses of the price trends.

Utilizing price action to spot profits is the core objective of trend trading. Trend traders profit from buying low and selling high by purchasing into uptrends and selling into downtrends. Trend trading is a technique that looks for gains by analyzing the momentum of an asset in one direction.

Technically, the credibility of the Trend Intensity indicator is not limited to generating trend signals. It tells you when to enter a buy or sell and the possible period to hold the asset before considering an exit.

Read the article to learn more about how the Trend Intensity Index 1.3 Averages (MTF) works in MT4 platforms.

How to trade using the Trend Intensity Index 1.3 Averages (MTF) indicator for MT4

The Trend Intensity Index 1.3 Averages (MTF) indicator applies a colored signal line in a separate window to display the trend information.

When the intensity index dives below 20 and turns brown, we consider it an oversold market. This is the time when we’ll look for buy setups. The indicator value returns above 20 means the trend has shifted to the upside direction; it’s good to go for long entries.

At any point, the signal line exceeds 80, which means the market has just stepped into the overbought zone. For sell confirmations, the signal line needs to fall below 80 and turn into a gray color.

Please note that the gray line indicates the market is under an on-trend condition. The combination of market bias and trend strength/weakness signals helps you to plan your trade from beginning to exit.

For instance, you went long once the indicator level passed above 20 and turned gray. In such conditions, you can hold the trade until the index hits above 80 and changes its color to blue to signal an overbought market.

One major drawback of the indicator is its signal may work inconsistently during choppy or consolidated markets. Therefore, only target those entries plotted within trend-following market conditions.

Conclusion
The Trend Intensity Index 1.3 Averages (MTF) is one of the best multifunctional MT4 trend indicators for beginners. Spot trend-following buy-sell opportunities at critical support/resistance zones and examine the signal validity. Also, you can customize it for MTF trading, enabling you to adapt to different market conditions using a single technical indicator.