Instantaneous Trend Filter Indicator

Instantaneous Trend Filter Indicator

The Instantaneous Trend Filter indicator for MT5 accurately identifies market trends and reversal zones.
Instantaneous Trend Filter is a MetaTrader 5 (MT5) indicator that determines the direction of the market trend and reversal zones. It identifies the short and long term direction of the market with potential trend reversal zones, making it suitable for scalping, day trading and swing trading purposes.

The indicator has moving averages optimized to filter out market noise and determine the likely direction of the market. It is chart friendly and provides clear market direction and trend reversal signals.

Thus, the Instantaneous Trend Filter indicator is suitable for beginners and experienced Forex traders who need a reliable technical trading tool.

How to Trade with the Instantaneous Trend Filter Indicator
The image below shows the action of the indicator on the EUR/USD chart on the H4 time frame.

The two moving averages are faster and slower moving averages with different periods. The ribbon color changes suggest buy and sell signals.

Therefore, a potential bullish move (buy signal) is when the ribbon changes color to blue. Likewise, a sell signal is displayed when the ribbon changes color to purple.

However, the indicator is not suitable as a stand-alone trading tool for buy and sell entries. Thus, Forex traders can use it with price action, candlestick patterns (e.g. bullish/bearish engulfing pin bar, etc.) or other technical indicators as a confluence to identify likely entry zones.

Conclusion
The Instantaneous Trend Filter Indicator for MT5 is a trend following indicator that detects market trends and reversal zones. It helps Forex traders conduct objective technical analysis and make informed trading decisions.