Half Trend Buy Sell Indicator MT4
Platform: MT4 Type: Trend Last update: May 10, 2025The Half Trend Buy Sell Indicator for MT4 is popular and one of the best trend-following indicators. It provides traders with powerful, but clear and accurate signals. The formula behind it involves moving average algo, but it also places buy/sell arrows directly on chart.
What’s more, the non-repainting feature makes it reliable and allows real backtesting.
Example chart:
How the half trend buy sell indicator for mt4 works
The indicator recognizes market direction through its color-coded readings.
When the conditions turn bullish, it displays a blue line with corresponding blue upward arrows – consider this as a buy trade opportunity. Similarly, a bearish setup occurs when there is a red line with downward arrows – in such case look for sell occasions.
There is also another important feature, namely it has a confirmation mechanism. To do this, it analyzes price action patterns to ensure they align with the generated signal. Instead placing the signal immediately, it waits for such confirmation before shifting its bias. This helps traders avoid false breakouts.
Also, keep in mind it was designed to detect existing trends, not predict them.
When is the half trend best used?
The half trend works best in trending markets, and rangebound movement may cause whipsaws. When it comes to timeframes, our recommendation is H1 and above, because minor price fluctuations are less likely to trigger false signals.
Technical formula explained
The indicator’s core algorithm integrates Simple Moving Averages (SMA) of both high and low prices, with the dedicated parameter controlling sensitivity.
It tracks significant price highs and lows while implementing a state-based trend detection system that requires specific confirmation before changing direction.
It also uses ATR (Average True Range) with a 100-period to create volatility-based channels and dynamically position its signal arrows at optimal distances (2xATR) from price. This makes signals appear at logical entry points rather than arbitrary levels.
Real life trade analysis
Let’s take a look at this EUR/GPB H4 chart.
As you can see, the indicator managed to capture two major price swings, resulting in strong profits. Notice how it generated a initial bullish signal even before the upward impulse began.
After that, near the top of the structure, there were two potential trades that would have ended in a small loss or breakeven. One of them could be avoided if took into account the overbought signal from the RSI. Pro tip: combine signals with other technical indicators to improve effectivness.
Eventually, momentum was exhausted, presenting another opportunity for a short position. The price dropped significantly afterward.
Long successful trade had risk to reward ration of 1:4 and short trade had R:R of 1:3, overall solid odds here.
Indicator settings
There are some customizable settings parameters explained below:
- Amplitude: this controls sensitivity and lower values = faster signals, higher values = slower, more stable trends.
- Show arrows: toggles signal arrows on/off.
- Channel display: adds or hides an optional price channel.
- Buy/Sell colors: adjusts visual color scheme.
It’s a good idea to experiment with amplitude values and test different timeframes to find a configuration that aligns with your trading style and the profile of your chosen asset.
For example, major currency pairs like EUR/USD often work well with default settings. For more volatile assets like gold (XAU/USD), using an amplitude value around 10 may give better results.
Bottom line
We rate the half trend buy sell indicator for metatrader 4 as a solid piece of trading software. Behind the scenes, it performs advanced calculations which translate to well-balanced reaction to market volatility. This means responsive enough for changing market conditions while avoiding excessive noise.
Just remember that no indicator is perfect, and the half trend works best when combined with proper risk management and confirmation from other analysis methods.
