This Trend Strength indicator available for MT4 is a momentum indicator that shows the strength of the Forex trend. This indicator helps you as a forex trader to monitor the momentum of the market. It provides a clearer picture of the market bias, whether it is up, down, or trading in a range.
Some forex traders (especially those who trade on technical indicators) have difficulty determining the strength or weakness of a trend. Without this basic understanding, the trader is likely to fail! Without this understanding, traders are likely to fail. If you have the Trend Strength indicator, there is no need to worry about the whims of the market. It automatically analyzes and shows the pace of the trend direction.
As a result, you are able to interpret and make educated trading decisions based on the results. This indicator allows you to decide when you should open or hold a position, or even exit it, depending on the market conditions. This indicator is used to indicate the direction of the trend as well as its strength.
How do I trade with the Trend Strength indicator on MT4?
This indicator tracks the trend. It is fairly simple to set up and use. It shows the potential of the trend in percentages, ranging from 10-100%. It is made up of red and green arrows (both 10% by default) to indicate the start of a new trend. As the trend advances, the indicator draws new arrows by percentage.
The green arrow marks that you are in an uptrend, which is also known as a buy signal or a long line. Conversely, a red arrow indicates a downtrend, meaning the market is selling, or a short signal.
For example, this forex chart above clearly shows that it is in an incredibly strong uptrend. This indicates that there is a lot of demand in the market and that the bears are on the move. That’s why this indicator makes trend following easy, because it performs all technical studies on the background and shows the results in percentages.
This indicator can be used to complement any strategy you use when trading in the market of financial instruments. It provides you with the confidence to keep trading simply by observing the percentage increase shown by the indicator. It can also be useful for detecting range markets. This means that the indicator is beneficial for all types of traders, including novice, experienced, intraday and swing traders.
Summary
The Trend Strength Indicator for MT4 is an indicator that you can put on your charts if your goal is to easily monitor the pace of direction. It allows you to see the extent of the trend at a glance. It is free to download.
