Trend Logic Indicator

Trend Logic Indicator

The Trend Logic indicator for MT4 is a trend-following technical tool with a nearly zero-lag feature that defines the trend direction of the market.

The Trend Logic indicator for MetaTrader 4 is a trend-following technical tool with a nearly zero-lag feature that defines the trend direction of the market. It runs through the main chart, identifies the trend direction, and then depicts it as a green or red line.

The indicator is great at detecting a potential trend reversal zone and the general direction of a financial trading asset. It simply follows the trend and then turns green/red when it identifies a potential bullish/bearish direction. In other words, the line would turn green when the trend is bullish and turns red in a bearish trend.

However, the indicator is recommended to be used in a trending market to identify a buy/sell entry zone. Moreover, it is not advisable to be used as a stand-alone technical tool to make a trading decision in the market. It is best to use it along with price action /other technical indicators to filter out false signals.

Furthermore, the indicator would be a great handy tool for scalpers, day/intraday, and swing traders during technical analysis. What’s more, it can also be conveniently used by novice/intermediate and advanced forex traders.

How to Trade With the Trend Logic

The above image depicts the action of the indicator on a EURUSD currency pair in the H4 timeframe.

The image shows that the market is in an uptrend. This implies that only the buy entry opportunities would be sought after when the indicator paints a bullish signal (green line). Conversely, the bearish signal (red line) would be ignored and treated as a minor retracement of the price.

Furthermore, the buy entries were valid because the indicator’s line turned green and price action (engulfing candlestick pattern) also suggested an imminent bullish move.

Conclusion
The Trend Logic indicator for MT4 is essentially a dynamic moving average-like trading tool that detects the directional bias of the market. Finally, it is free to download.