Trend indicators are technical analysis tools that allow determining the trend and its direction in the market. Unlike the oscillators, they reflect the current market situation not giving forecasts for the future. However, it is impossible to conduct high-quality technical analysis without the trend indicators. Therefore, these instruments are widely used by traders all over the world.
The main feature of the trend indicators is the effectiveness of their signals only in the trending market. In the flat, their use is not recommended; it is better to use oscillators. Simultaneous use of several technical analysis tools is highly effective.
A trend is one of the basic concepts used in the financial market trading and, in particular, in Forex. This is a stable price movement direction, and there are 3 types of the trend:
- When the price moves upwards - a bullish trend;
- When the price moves down - a bearish trend;
- When there are minor fluctuations - this is a lateral or a flat.
The main trend indicators' advantage they allow to identify the trend and trace its direction even with minor fluctuations. These advisers perfectly demonstrate the points of the trend's beginning and its completion or reversal. Such information allows a trader to identify the most favorable moment for entering the market and obtaining the maximum profit.
Work with trend indicators
During the Forex market existence, a lot of trend indicators have been written; most of them are still popular, and even included in the MT4 trading platform. If a trader doesn't like the standard set, he can buy an additional indicator and embed it in his trading platform, or write the robot by himself. Naturally, the second option is much more complicated than the first one.
It's enough for a trader to use 2-3 advisers for successful trading. If you are not ready to invent the program by yourself, and the built-in options don't quite fit you, you can download the indicator on our website and read its installation instructions.
A wide variety of indicators appeared because they interpret the signals in different ways. Depending on the strategy used, a trader analyzes the certain asset price movement in his own way and wants to receive signals at certain moments of the trend movement. In the beginning, a trader will look for an indicator that will help open beneficial deals with a minimal personal presence.
Specific trend indicator features
Due to a wide range of indicators and methods, a trader can test his strategy on different currency pairs applying different time frames. You can also pick up the pairs of indicators used maximally adjusting them for your trading strategy in Forex. Getting accurate signals, a trader can profitably enter the market, and it's worth it to work with indicators.
One of the most common options for trend indicators use is a combination of the built-in MT4 indicator and the acquired one. The fact is that the trading platform is filled with relatively simple indicators, and most of them are just the same. To get more accurate signals, you need to download an indicator on our website and combine it with the one proposed in MT4. An ideal pair of advisors will help you determine the market entering moments and prepare for a trend reversal without financial losses. You won't need to spend hours monitoring the market, the indicator will show the necessary changes, and you'll quickly react to them.
Here is an illustration of how indicators analyze the price movement. For example, the moving average is built on a price graph and gives a signal when a price crosses it in a certain direction. At the same time, the ADX indicator (Average Directional Index) notifies about a trend when it intersects the 20th level, and the direction of the trend is determined by the auxiliary DI + and DI- lines.
Optimal indicator pair
Naturally, to learn the correct indicator use and to feel its advantages, you need to practice a lot. Selecting the optimal combination, you must pay attention to the schedule periods, because the sample latitude depends on the relevance of the signals. Note that the indicator that seems to be the easiest one at the first sight can hide many additional features. For example, the moving average, despite its simplicity, is quite profitable with the right approach and skillful application.
If the indicators built into your terminal do not suit you or you did not select the optimal pair from the list proposed, please, download the trend indicator on our website. In this section, you will find a large number of trend indicators with detailed installation and operation descriptions.