The moving average indicator has also been popularised as a crossover entry strategy: the combination of a fast and slow-moving average with their crossover determining when to activate a trade. Keep of markets with prices actively trading within the moving average. Trend lines are not your typical trading indicator but more of a drawing tool. None the less, if used correctly, it is one of the best indicators for identifying the trend and gauging the strength of a trend.

To identify a bullish trend using the trend line, join two successive higher lows and voila, a bullish trend is identified.

On the flip side, join two consecutive lower highs to identify a bearish trend. Until the trend line is significantly breached, the market trend is considered intact for as long as prices test the trend line and bounce back. The incline of the trend line gives insight into the strength of the trend. The more the degree of a slope, the more the market volatility hence, the greater the strength. A very steep incline on the trend line in most cases is not sustainable for long periods.

The price channel drawing tool is an advancement of the trend line and is another excellent trend indicator. Drawing the price channel follows the same trend line principles: to identify a bullish trend join two successive higher lows and to identify a bearish market join two lower highs. The interpretation is also similar to when using the trend line.

The variation comes in the extra equidistant parallel line. In most cases, prices oscillate between the two equidistant lines, either going up or down. The price channel indicator is the go-to trading indicator for swing traders because both channels offer trading opportunities as price oscillates between them. This is also a great trading indicator if interested in taking advantage of a sideways market, ranging market. Bollinger bands fall under the trading indicator category of price channels.

How do you determine the beginning of a market movement? For a trend reversal to occur, there must be a shift in power between supply and demand. Bollinger bands give insight into this significant price points, overbought and oversold price zones. Once the market is in this price saturation point, there is usually a high probability of a new market movement.

To effectively carry out the role of trend identification, the Bollinger band is made up of three bands:. Contracted Bollinger bands are a sign of low momentum while diverged Bollinger bands hint at high trend momentum. This trading indicator seeks to identify trends at their beginning. The parabolic SAR Indicator identifies the market trend by forming a series of dots. Formation of dots below the market prices is considered evidence of a bullish market while the formation of dots above the price bars points to a bearish market.

The moving average convergence divergence, MACD, is a trend-following momentum indicator based on moving averages. i have been wiatching for 2 yrs , definitely yours videos, writes up are far superior and of highquality , than those of early days when you are relying more on indicators now explaining most of these things just with help of price, pls. make one videos on price and volume interplay… where we shud ignore volume and where nothing without volume….

thx and kudos for such selfless and valuable service. As an intraday trader which moving average is the best to capture trend for intraday 50MA or 20 MA. Rayner, thanks a lot for the knowledge you share. Your way of teaching is excellent.

You explain everything in a easiest way to understand. I am glad to be part of your telegram channel. Thank you very much. Hi Rayner.

Thanks for this blog and videos. They were very educational. I watch your videos on youtube and I just joined your telegram. I have a lot of questions but for now, I would like to know which MA indicator to set on my trading app?!. Which MA is better for trading then with respect to timeframe?? Great Work Ray T. I love this great Lecture. Its so educational and encouraging And best of all very Corrective Nature of it all. Thanks alot. Rayner, you are truly a gem and I appreciate you for giving out all of this knowledge.

It has helped me become a more knowledgeable trader. what if the trade goes negative even if we enter a trade perfectly on POV, Ramesh Santharam. Rayner Two is the Jesus of forex trading for, am a successful non gambling trader today because of his free educational videos and all. God bless you for making me who I am today. Simple and straight to each point.

Conclusion with a quick recap. Best article for trading, and thank you so much. Though am still on demo trading, but your revelation on strategy is mind blowing. Your Books Are Priceless.

They Are to be cherished like gold. They contain Secrets worth millions. You are really a teacher. A good one at that. I will see you one day when the Vistas are clear enough. Thank you. Thank u well explained trendline identification. I usually observe higher high and Lower low and also mov. To identify the trend , zoom out in respect to the type of trader you are and time frame you trade , check if prices are making higher high or lower highs more importantly you can use the line to identify the highs and lows.

Please log in again. The login page will open in a new tab. After logging in you can close it and return to this page. The 5 Best Trend Indicators That Work. For example: The Daily chart is in an uptrend. So what should you do? You read me right. I said the trend is an illusion. Because you can manipulate the trend and see what you want to believe in. A trend is meaningless without knowing your timeframe. So… Before you attempt to identify the direction of the forex trend, you must know your timeframe.

For example: Where will losing traders puke? Where are traders placing their stops? Where will new traders enter the market? And a simple solution to it is… Line chart. However… You must know that line chart only considers the closing price. Trend indicators 4: Trendlines A Trendline is a tool you draw on your charts. But before I get to it, you must learn how to draw trendlines the correct way. The way you draw and interpret it is the same as Trendline.

Not sure what the trend is? Stop being fixated on what the market is doing each and every moment. Instead, zoom out your charts. Zoom out your charts and see the big picture.

By zooming out, you become more effective at using forex and trend indicators alike. What type of trend is this? Let me explain… 1. Next… 2. An example: Healthy trend A healthy trend is when the market has a healthy pullback and remains above the 50MA. An example: If you want to learn more about forex trend indicators, go read The Trend Trading Strategy Guide. Frequently asked questions 1: Which timeframe should I use to identify the trend? Leave a comment below and let me know your thoughts….

Share 0. Tweet 0. Best Guiding the MA. Rated 5 out of 5. to all peoples at the first trading knowledge. Your review. Your overall rating Select a Rating 5 Stars 4 Stars 3 Stars 2 Stars 1 Star. Title of your review. Your name. Your email. This review is based on my own experience and is my genuine opinion. Submit your review.

Great Job Man!! All that I have reading on ur pages are educative , Kudos to You Man. Best regards Davy. Reference it to your trading timeframe. Hey drew! Hope that helps! Hey Rayner, Thanks for explaining and showing us what is your strategy. that is K. s eduation ï just like it thanks for polishing My bain. Awesome to hear that Tran. Hi Ray, Very good learnings from this. You resolved my time related chart analysis ideas.

Hi Rayner, thanks a lot for the article. Will implement some of the techniques into my own. Thanks in advance. Dear Rayner, Thanks for great supporting us with giving more knowledge. Rayner, I just want to say Thank You for taking the time out to help you are a God send. May you be Bless. But generally, it keeps you on the right side of the long-term trend. Thank you for the nice post. Chances are, the 1-hour would be your higher timeframe to reference from.

Great thanks for improving my understanding. Thanks for explaining it so well 🙂 A great learning for life-long. Great content as always. Keep up the good work brother.

Good and clear explanation. Additionally, traders can sell spikes after a death cross between MA and the MA 50 and buy dips after a golden cross. According to the generally accepted rules, the MA 50 moving above MA represents a bullish crossover of the moving averages. Conversely, the MA turning above MA 50 is considered as a bearish crossover signal.

As you can see in the above image, after the MA moves above the MA, the price initiates a strong bullish surge to the north following the bullish crossover signal. If you wish to focus more on the recent changes in price-actions, you may switch to an exponential moving average EMA. The Moving Average Convergence Divergence or MACD has a strong trending component, even though it is listed as an oscillator on most trading platforms. The MACD consists of a histogram that can show the nature of any current trend in the market, making it one of the most powerful trending tools.

Traders should use the histogram against the MACD line. The histogram tends to stay below the MACD line in a bullish trend. Thus traders should exit when the histogram crosses above the MACD as it may indicate a possible bullish reversal. MACD line in a bullish trend. During a strong bullish trend condition, both the MACD line and its histogram bars will show positive values. Once they drop below zero levels, consider it as a bearish reversal of the market trend.

According to the above image, the price initiates a bearish trend move after both the MACD line and the histogram bars drop below 0. The price keeps moving downwards strongly until the histogram bars start to close above the MACD line showing the current bearish trend is losing its momentum.

The Aroon Indicator is one of the lesser-known but powerful trend indicators in existence. Built by Tushar Chande in , it is mainly used for identifying changes in the underlying trend. It is unlike other trend indicators It consists of two lines and appears at the bottom of a chart. It works only on the daily timeframe.

The Aroon indicator measures the changes and the strength of any trend in a separate window like an oscillator. The two lines the Aroon indicator is made up of are conveniently named Aroon up and Aroon down. A bearish trend begins when the reverse happens. The line in yellow color shows the Aroon Up and the line in blue represents the Aroon Down. Initially, the Aroon Up moves above Aroon Down and plots a bullish crossover. We consider it as a buy signal. As you can see, right after the crossover was plotted, the price starts to hike north and makes a large bullish move.

Once the bullish move was slowed down by a sidelined condition of the market, the Arun Down moved above Aroon Up and formed a bearish crossover signal. In the meantime, the price also made a bearish breakout and ended the sidelined period by initiating a strong bearish trend. The Donchian Channel is considered a unique channel that reinforces trending conditions. Developed by Richard Donchian, it is a trend indicator that helps users identify trends. Trading with the Donchian Channel can be both simple as well as complex.

It is generally advisable for traders to sell when the price reaches the lower edge of the channel, and buy when it reaches the upper edge. The upper band and lower band of the indicator are plotted based on the previous highest high and the lowest low of the price.

To many people, trading seems like a difficult job reserved only for financial geniuses. People who are not into trading or are new to trading often feel lost when they look in a price chart. They know it is showing the movement of price. They may know how to read it. But it would usually mean nothing to them. They would not be able to interpret what price is doing, and they would likely not be able to see any opportunity to make money out of what the market is showing them, even if they are staring at a trading opportunity right in front of them.

This is because new traders still lack the skill to read price charts and interpret market behaviors just by looking at charts. This skill is called technical charting or technical analysis.

Technical chartists take pride in being able to read price charts and understanding what the market might be doing. It takes skill and this skill needs time to develop. However, there is another way to do technical analysis trading which is much easier for new traders.

This is through the use of technical indicators. These are tools that help traders identify market movements such as trends and trend reversals. Reading price charts could be a whole lot easier just by using some effective technical indicators. The Forex MT4 Trend Indicator is an excellent momentum indicator which accurately indicates trend direction. This indicator is derived from the Exponential Moving Average EMA. The indicator prints bars based on the EMA of different components of the candles.

The bars are then colored depending on the direction of the trend. Bullish trends have bars colored blue while bearish trends have red bars.

The indicator also prints arrows as entry signals indicating trend changes. If observed closely, this indicator is great at indicating midterm trends. It is accurate and reliable, it allows traders to have consistently high probability trade entries even as a standalone entry signal. The Fisher Transform indicator is an oscillating indicator which transfigures price into a Gaussian normal distribution.

This mathematically-based indicator makes use of probabilities in order to help traders identify high probability trading signals. This indicator proves to be very effective and could be used in a variety of ways. Mean Reversal traders use this indicator to identify potential trend reversals based on overbought or oversold conditions.

The indicator draws two lines that oscillate from positive to negative and vice versa. The market is considered to be overbought whenever price is considerably above zero. Mean Reversal signals are indicated when the two lines crossover going towards zero. On the other hand, lines considerably below zero indicate an oversold condition, and lines crossing over heading towards zero are considered buy entry signals. Trend Following traders on the other hand make use of the midline as the confirmation of a trend reversal.

Lines crossing over zero is indicative of a bullish trend reversal, while lines crossing below zero indicates a bearish trend reversal.

This Trend Indicator Signals Forex Trading Strategy is based on the confluence of two complementary indicators, which provide accurate trend reversal signals. The Forex MT4 Trend Indicator and the Fisher Transform indicator works well in identifying trend direction and trend reversals. They also tend to have lesser false trade signals as compared to other indicators and allow traders to hold on to trades which are on a trend much longer.

Coincidentally, these indicators also tend to produce signals that trend whenever they are in confluence. Entry signals will be based on the confluence of the Forex MT4 Trend Indicator printing an entry signal arrow and the Fisher Transform indicator crossing over from positive to negative or vice versa.

However, although these indicators produce high quality trade signals as is, it is much better to align trade signals with the long-term trend. This is to allow the trades to have enough room to move. To do this, we will be making use of the period Exponential Moving Average EMA as our long-term trend filter. Trades should be taken in the direction of the EMA trend. This trading strategy is a working trading strategy which works well as a swing trading strategy.

If you would observe the longer timeframes, trends tend to respect the EMA and would bounce off it after a retrace. Price Action traders use diagonal support or resistance breakouts as entries for these entries. However, these entries are very subjective. This strategy also allows for entries that trend much longer allowing for yields as much as to as high as Forex Trading Strategies Installation Instructions Trend Indicator Signals Forex Trading Strategy is a combination of Metatrader 4 MT4 indicator s and template.

The essence of this forex strategy is to transform the accumulated history data and trading signals. Trend Indicator Signals Forex Trading Strategy provides an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.

Based on this information, traders can assume further price movement and adjust this strategy accordingly. Click Here for Step-By-Step XM Broker Account Opening Guide. Some templates are already integrated with the MT4 Indicators from the MetaTrader Platform. Get Download Access. Save my name, email, and website in this browser for the next time I comment.

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Table of Contents 1 Forex MT4 Trend Indicator 2 Fisher Transform 3 Trading Strategy 3. RELATED ARTICLES MORE FROM AUTHOR. Carter Quantitative Estimation Forex Trading Strategy.

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Which MA is better for trading then with respect to timeframe?? Hope that helps! Your Books Are Priceless. Thus, they have been applied to any given chat by almost all online traders. Indicators such as RSI, Bollinger Bands, ATR, and On Balance Volume are some of the top indicators. So what should you do? The limitation of this is that the angles are skewed on lower timeframes and scale of chart, so some may have different results 🙂.

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