Forex Trend Scanner Indicator

Forex Trend Scanner Indicator

Forex Trend Scanner helps you to find the prevailing trend. You can take advantage of the tool to manage your trading.

Are you a newbie trader and cannot find the directional bias in the market? Are you an older trader but still not aware of trend reversals? Forex Trend Scanner is an excellent indicator that tells you the continuation or reversal of a trend.

What is the Forex Trend Scanner Indicator?
As a trader, you should be aware of candlesticks. However, it is not easy to predict the market movement unless you know various candlestick patterns. With Forex Trend Scanner, you can easily find the trends only with the colors of candlesticks.

Usually, we have two colors for the candlesticks, i.e. red for bearish and green for bullish candlesticks. However, the Forex Trend Scanner indicator shows four colors. Two additional colors reveal the trend reversal.

How to use the Forex Trend Scanner indicator?
You can use the Forex Trend Scanner to find new trading opportunities or to manage your existing trading positions. Let’s find out what the color of candlesticks indicate.

Lime Green: It indicates the prevailing bullish trend.

Dark Green: It indicates that the bullish trend has started weakening.

Red: It shows running bearish trend.

Maroon: It reveals that the bearish trend got weak.

If you look at the chart, you will understand in a glance whether you can keep the open positions intact or close them depending upon the candle colors.

For example, if you are holding a long position, look at the chart and if candles have started turning dark green, it shows that bullish trend is now weakening and you can close your existing position and open a fresh one depending upon the color of candlesticks.

Forex Trend Scanner indicator trading strategies
Let’s learn precisely about the trading strategies.

Buy setup
After a bearish run for at least 15 – 20 candlesticks, look for red candles to turn maroon.
Wait for a new lime green candlestick to appear.
Enter the long position once the bullish candle closes.
Place stop-loss near the local lows.
Close the trade in profit once you see dark green candles on the chart.
Alternatively, you can put a take profit target 1.5 times the stop-loss.

Sell setup
After a bullish run for at least 15 – 20 candlesticks, look for lime green candles to turn dark green.
Wait for a new red candlestick to appear.
Enter the long position once the bearish candle closes.
Place stop-loss near the local highs.
Close the trade in profit once you see maroon candles on the chart.
Alternatively, you can put a take profit target 1.5 times the stop-loss.

Conclusion for Forex Trend Scanner indicator
Though the indicator can be used as a standalone tool for your trading strategy but you have to bear in mind that there are few cons of the tool. When you find an entry signal, the price might have moved much in the trend’s way that you may not be able to find greater profit.