Power Trend Indicator
Platform: MT4 Type: Trend Last update: October 17, 2024The Power Trend Indicator has an interesting ability to measure market trends and provides a visual display of their various stages. That gauge tells a trader what is the trend direction and its strength.
Closer look on the Power Trend Indicator
When you first load the power trend you will notice that it consists of colorful bars that are either rising above the 0 level or falling below the 0 level. Each color has a meaning as it determines the presence of a trend, direction, and strength. In other words, it’s able to show the possible emergence of a new trend, and determine if the trend strength is low, moderate or strong.
What’s more these colorful bars can overlap each other, depending on the stage of the trend. Take a look on the example chart.
Default settings of this indicator are rather suitable for scalping and in our opinion give too many signals (a lot of noise). In the examples below, we changed the value of option PT_Period from 1 to 10. In a result, we get fewer signals, more quality, and for medium to long-term horizon, so suitable for swing trading.
Buy Signal
The direction of the trend is changed to upwards when the bars switch form negative to positive (above 0 level). This is an early sign of the new bullish trend emerging. Appearing of the blue color bars means that the strend is getting stronger. The green bars suggest the strend is in advanced stage. The red bars indicate that there are some minor forces in the opposite direction.
Sell Signal
The direction of the trend is changed to downwards when the bars switch form positive to negative (below 0 level). This is an early sign of the new bearish trend emerging. Appearing of the blue color bars means that the strend is getting stronger. The green bars suggest the strend is in advanced stage. The red bars indicate that there are some minor forces in the opposite direction.
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