Trend Filter Indicator

Trend Filter Indicator

Trend Filter Indicator For MT4 plots the bullish, bearish, and neutral market conditions of the forex market and helps traders to buy and sell accordingly.

The trend filter indicator for MT4 identifies bullish, bearish and neutral market conditions. As a result, forex traders can buy or sell accordingly in a trending market and stay in the sidelines during a neutral or flat market condition.

The indicator is easy to use and shows the results as color change of the indicator line. So, the indicator is best suitable for new and advanced forex traders.

Trend Filter Indicator For MT4 Trading Signals

The above GBPUSD H4 candlestick price chart shows the trend filter indicator for MT4 in action. The indicator plots the oscillator in a separate window. Red line indicates a bearish market condition and the green line indicates bullish market condition.

However, the yellow line indicates a flat market condition or indicates a trend development is underway. Once the trend matures the line changes to red or green and indicates the market direction.

So, traders should wait for the line to change from yellow to green and enter the markets with a buy position. Similarly, once the line changes from yellow to red it indicates a bearish market and warrants a sell trade.

Another important aspect of the trend filter indicator is that it does not repaint. Most calculations are based on the values of closed candles, so after a candle is closed the indicator values does not change. This helps forex traders to base their trading decisions confidently using this indicator.

Conclusion
The Trend filter indicator for MT4 is an excellent tool to identify the bullish, bearish and neutral market phases. Additionally, the indicator color changes happen mostly after a confirmed trend change. So, forex traders can anticipate positive trading results by using this indicator.