Introduction to the DDFX Major Trend Indicator
The DDFX Major Trend indicator is, as the name suggests, is a trend-following gauge that displays the major trend for any currency pair and timeframe in a subwindow placed just below the main trading chart.
The signals generated by this trading tool are quite easy to understand and easy to follow.
The logic behind that is really simple. Blue histogram bars imply the major trend is considered bullish, and red histogram bars imply the major trend is considered bearish.
The DDFX Major Trend can be utilized as a standalone trend indicator or can put together with other technical analysis tools to create a profitable trading system or strategy.
For instance, an oscillator could provide you with accurate oversold and overbought signals in the direction of the DDFX Major Trend.
DDFX is useful for a variety of trading styles like scalping, day trading and swing trading.
The default indicator settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences.
How does it work? How to apply in trading?
Trading Rules Explanation
Signals provided by the DDFX Major Trend forex indicator are really intuitive and will not cause you difficulties. Simply follow the suggestions below.
Buy Trade with DDFX
Open long trade when the DDFX Major Trend changes its bars color from red to blue (bullish major trend). Place stop loss a few pips below last swing low. Close your open position when an opposite signal occurs, or use your own preferred method of trade exit.
Sell Trade with DDFX
Open short trade when the DDFX Major Trend changes its bar color from blue to red (bearish major trend). Place stop loss a few pips above last swing high. Close your open position when an opposite signal occurs, or use your own preferred method of trade exit.
As always, to achieve good results, remember about proper money management. To be a profitable trader you need to master discipline, emotions, and psychology. It is crucial to know when to trade, but also when not to trade. Avoid trading during unfavorable times and market conditions like low volume/volatility conditions, beyond major sessions, exotic currency pairs, wider spread, etc.
When it comes to the best hours to use the DDFX Major Trend indicator, you can go with any, but we suggest London and New York sessions, as major sessions provide the best volume and market volatility.
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 an example of DDFX Major Trend in action. In conjunction with 50 period exponential moving average.
As you can see, adding some filters helps to avoid fake signals. Despite the fact it can be used in standalone trading, we suggest adding it to some trading system as a supplement.
How to set up the DDFX Major Trend indicator in MT4?
Download the DDFX Major Trend.rar archive at the bottom of this post, unpack it, then copy and paste the DDFX Major Trend.ex4 or DDFX Major Trend.mq4 indicator files into the MQL4 folder of the Metatrader 4 trading platform.
You can gain access to this folder by clicking the top menu options, which goes as follows:
File > Open Data Folder > MQL4 > Indicators (paste here).
Now go to the left side of your MT4 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.
The DDFX Major Trend indicator is well worth adding to your trading collection. A good forex indicator will most probably enhance your chance of success. Nonetheless, remember about having realistic expectations. Just like any other technical analysis tool, is not capable of providing accurate signals 100% of the time. Thus, this forex indicator provides false signals occasionally. Its performance will vary significantly depending on market conditions. Feel free to develop your own trading system based around it.
Download Free Forex MT4 DDFX Major Trend Indicator
To download the DDFX Major Trend Indicator for Metatrader 4 (MT4) for free just click the button below: