LabTrend Indicator

LabTrend Indicator

The LabTrend indicator for MT4 is a trend follower that delivers buy/sell signals with a potential trend stop zone.

The LabTrend indicator for MetaTrader 4 is an incredible trading tool that works similarly to the popular ASC Trend, however, with more advanced technical functions. Unlike the ASC Trend indicator that simply analyzes and defines the trend direction, this version (LabTrend) was built with a trend analyzer and a tool that detects potential trend exhaustion zones.

The indicator comes with algorithms that identify and mark the beginning of a trend with a dot. The blue/red dot signals the beginning of a bullish/bearish trend, respectively. In other words, the blue/red signal dot tells you the appropriate time to buy/sell an asset.

Furthermore, the indicator also comes with black lines that enclose the candlesticks, which serve as the potential exhaustion zone for a possible trend reversal. The black lines are used as a signal to exit any running trade position. The potential trend reversal is signaled when the price creates multiple wick rejections at the upper/lower line, which should also be followed by a flat line.

In essence, the LabTrend indicator follows the trend and delivers clear buy/sell signals once a bullish/bearish sentiment is confirmed. Besides, it was also incorporated with a trend stop tool that would help you to know when to anticipate price reversals. What’s more, it is suitable for both scalping and day/intraday trading, depending on the timeframe a signal is generated.

Furthermore, the indicator would easily pass as a stand-alone trading tool that generates incredible trade entry signals. However, it is still recommended to be used as confluence in synergy with price action/other technical indicators for better trade entries/exits.

How to Trade With the LabTrend Indicator

The above screenshot depicts the action of the indicator on a EURUSD currency pair in the M30 timeframe. It illustrates how a high-probability sell signal was generated with price action in synergy with the indicator’s signal.

Firstly, the image shows wick rejections from the upside, which suggests a possible trend reversal. Secondly, the price also printed a bearish reversal candlestick pattern immediately after the wicks, which further posits a potential bearish move. Finally, the indicator painted a sell signal, which was also in agreement with the aforementioned price actions, thus, the entry.

Furthermore, the price moved a few pips in the anticipated direction (sell) and then printed some wick rejections, which made the black line to become flat, thus signaling an optimal trade exit zone.

Conclusion
The Labrend indicator for MT4 is a typical trend-following technical analysis tool that delivers incredible buy/sell trade entries/exits. Besides, it is also recommended for novice, intermediate, and advanced forex traders to identify trading opportunities. Finally, it is free to download.