Trend Intensity Index Indicator

Trend Intensity Index Indicator

Determine the exact levels of trend intensity in all market sessions. Identify bullish and bearish market trends on MTF charts. Suitable for forex strategies and stock trading.

The Trend Intensity Index is an MT5 technical indicator. It accurately determines market bias and monitors the strength/weakness of price trends.

Using price action to determine profit is the main purpose of trend trading. Trend traders profit from buying low and selling high, buying in an uptrend and selling in a downtrend. Trend trading is a method that looks for profit by analyzing the momentum of an asset in one direction.

Technically, the reliability of the Trend Intensity indicator is not limited to generating trend signals. It tells you when to enter to buy or sell and the possible holding period of the asset before considering exiting.

Read the article to learn more about how the Trend Intensity Index works on the MT5 platforms.

How to trade using the Trend Intensity Index indicator for MT5
The Trend Intensity Index indicator uses a colored signal line in a separate window to display trend information.

When the intensity index falls below 20 and turns brown, we consider the market to be oversold. This is the time when we will be looking for installations to buy. The indicator value returns above 20, which means that the trend has changed to an upward direction; good for long notes.

At any point, the signal line exceeds 80, which means that the market has just entered the overbought zone. To confirm the sale, the signal line should fall below 80 and turn gray.

Note that the gray line indicates that the market is in a trending state. The combination of market bias and trend strength/weakness signals helps you plan your trade from inception to exit.

For example, you entered a long position when the indicator level crossed the 20 mark and turned gray. In such conditions, you can hold the trade until the index exceeds 80 and changes its color to blue, signaling that the market is overbought.

One of the main drawbacks of the indicator is that its signal can work inconsistently in choppy or consolidated markets. Thus, focus only on those entries that are built in trend-following market conditions.

Conclusion
The Trend Intensity Index is one of the best all-in-one MT5 trend indicators for beginners. Identify buy/sell opportunities in critical trend-following support/resistance zones and validate the signal. In addition, you can set it up for MTF trading, allowing you to adapt to different market conditions with a single technical indicator.