Introduction to the Trend Direction & Force Index Averages Indicator
The Trend Direction & Force Index Averages Indicator is a custom oscillator that fluctuates above and below zero. It combines price movement and volume to assess the force behind price movements and recognizes potential trend changes. Additionally, it colorizes the line to blue (above 0 level) and pink (below 0 level).
That forex indicator is simple, easy to use, and fits all kinds of timeframes and currency pairs. It is displayed in a separate window placed just below the main trading chart.
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
Buy Entry: Open long trade when the indicator value turns positive (above 0 level) and the triggering bar has closed. The signal line should be colored to blue. Place your stop loss a few pips below the last swing low.
Sell Entry: Open short trade when the indicator value turns negative (below 0 level) and the triggering bar has closed. The signal line should be colored to pink. Place your stop loss a few pips above the last swing high.
Exit Trade / Take Profit: Close your open trade when the indicator value turns neutral (at 0 level), 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.
Example of USD/JPY Daily Chart
This screenshot below shows an example of Trend Direction & Force Index Averages forex indicator in action.
How to set up the Trend Direction & Force Index Averages indicator in MT4?
Download the Trend Direction & Force Index Averages.rar archive at the bottom of this post, unpack it, then copy and paste the Trend Direction & Force Index Averages.ex4 or Trend Direction & Force Index Averages.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 Trend Direction & Force Index Averages 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 Trend Direction & Force Index Averages Indicator
To download the Trend Direction & Force Index Averages Indicator for Metatrader 4 (MT4) for free just click the button below: