The Trend Traffic indicator is a MetaTrader custom trading tool that highlights the actions of bulls and bears in the forex market. This indicator will help you identify which party (bull/bear), is currently dominant the market.
In essence, the indicator will help you to trade in the direction of the trend. This could lead to higher chances of completing trades.
The indicator is easy to use and can be used by novice, intermediate and advanced traders for day-to-day trading activities. It is suitable for both scalpers and intraday traders.
Trend Traffic Indicator BUY/SELL Signs
This is how the indicator will look on your MT4 dashboard. This screenshot also shows how to identify potential trading setups.
The Trend Traffic indicator is a good indicator as a standalone indicator. It is best to use it in conjunction with other technical indicators/price actions for greater accuracy.
The indicator’s 0.00 level divides a trend in bullish or bearish biases. Two exponential moving averages are included and two histogram bars, which represent different trends.
- The green bar signifies bullish/bearish dominance.
- The yellow bar is an indicator of a weak trend.
- Red Bar: This symbol indicates a change in the trend bias (e.g. From bearish to bullish
BUY Sign: First, wait for Exponential Moving Averages to cross over the 0.00 level. Wait for the indicator’s GREEN histogram bars to appear. This indicates bullish dominance. Then, open a LONG/BUY trade in line with price action.
NB: To ensure optimal trade entry, confirm your entry with price action (e.g. Before opening a long or buy position, bullish engulfing should be confirmed.
SELL Signal First, wait for the Exponential Moving Averages to cross below the 0.00 level. Wait for the indicator’s GREEN histogram bars to show (which indicates bearish dominance), then open a Sell/Short position in accordance with price action.
The trading style of the trader determines whether Take Profit or Stop Loss is appropriate. To maximize the potential of the setup, however, you can always trail the Stop Loss for a winning trade.
The Trend Traffic indicator for MT4 helps you identify the strength and bias of any tradable asset. It is optimized with various functionalities that will help you find viable trading opportunities in forex markets. The indicator is also free.