Flat Trend Indicator

Flat Trend Indicator

Suitable Flat Trend indicator for accurate buy and sell signal. A perfect trend reversal detector.

What is a flat trend indicator for MT4? The Flat trend indicator-free download is a fusion of three moving averages. The indicator combines fast, medium, and slow moving MA to produce an indicator that forms in a separate window below the price chart for easy reading and interpretation.

The indicator changes color from red to green to yellow depending on the prevailing market trend. You can modify the moving average settings to suit your trading strategy. You can use the flat trend as a stand-alone indicator or in combination with other technical trading tools. The indicator works well in any market. For instance, you can use it for scalping low spread currencies such as EUR/USD AND GBP/USD.

How to trade using the Flat Trend Indicator
The indicator bars can take three colors.

Green bars represent a buy signal.
Red bars indicate a sell signal.
Yellow bars indicate a flat market trend.

Buy Signal
Wait for the indicator to post yellow bars. This is an indication of a consolidating market. Now enter a buy position when the indicator changes from yellow to green. In essence, a buy signal occurs when the indicator bars change to green color.

Sell Signal
The Flat trend indicator shows an ideal short position when the indicator changes to red. You can wait for the instrument to establish a ranging market by posting yellow bars.

You can also use the price action to get a clear signal. For instance, if the price action points to a ranging market, enter the trade when the indicator changes to red. For an impending uptrend, wait for the indicator to change to green.

Exit strategy
Exit from a long position when the indicator changes color from green to yellow and then red or from green to red. This is an indication of market reversal. Similarly, exit from a short position when the indicator bars change from red to green.

Chart Example

The price chart shows price movement for the Euro against the GBP. The indicator bar changes color to green, signaling a buy signal as indicated on the chart. In fact, the market moves over a hundred pips upwards after the buy signal.

Similarly, the indicator changes to red which is a sell signal. The yellow bars indicate a ranging market. The price moves over 50 pips after the sell signal shown on the chart.

Conclusion
The flat trend indicator serves all types of traders. Whether you want to identify the price direction or get buy and sell signals, it is the right tool for you. You simply need to familiarize yourself with the color changes. Simply buy when the indicator bars are green and short trades when the indicator bars are red. If the bars are yellow, it is prudent to stay away from the market and wait for it to start trending.