DDFX Major Trend Indicator
Platform: MT4 Type: Trend Last update: December 20, 2024The DDFX Major Trend Indicator for MT4 is a simple but still useful for recognizing market direction. The best use case for traders is to support their analysis with overall outlook provided by this gauge, however specific entry points should be determined by something else that’s more sensititve regarding short term fluctuations.
Decoding colors of the ddfx major trend indicator
Esentially, all the readings are displayed in a separate window placed just below the main trading chart. It reveals the trend of selected currency pair with the help of blue and red color bars – they correspond to bullish and bearish scenarios respectively.
Example chart:
Let’s have a look at few practical applications below, mainly utilizing an standard approach.
Buy trade
Open long trade when the bars’ color changes from red to blue (bullish major trend). Place stop loss a few pips below the last swing low. Close your open position when an opposite signal occurs, or use your own preferred method of trade exit.
Sell trade
For the short opportunity similar rules apply and it occurs at color switch from blue to red (bearish major trend). Place stop loss a few pips above the last swing high. Take profit when opposite signal appears or work on your own exit strategy.
Additional notes
The appearance of an opposite signal could be an early sign of trend reversal, but you should confirm that with some additional filters.
Be extra cautious during sideways and ranging markets. Don’t hesitate to confirm your decisions with other trend-following technical gauges e.g. Moving Averages or Parabolic SAR.
This screenshot below shows the ddfx in conjunction with 50-period Exponential Moving Average.
Settings
These are available settings.
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