Trend Direction V2 Indicator
MT4 Trend TradingFree DownloadThe Trend Direction V2 Indicator for MT4 performs an analysis in order to define the predominating market trend. Behind the scenes, it calculates past and current price data to provide real direction. These readings are presented in the form of histogram bars, which are clean and very user-friendly.
The below screenshot shows the indicator in action once it’s activated in your MetaTrader 4 platform.
Recognizing prevailing trend with ease
As you can see, it generates bi-colored histogram signals that easily reflect bullish and bearish market sentiments. Simply put, it has the following meaning:
- green bars correspond to a bullish market and traders are supposed to look for buying opportunities only
- red bars indicate a bearish scenario and traders are meant to consider selling opportunities only
Technical analysis becomes much more clean, smooth and reliable once the overall trend is recognized. The are best chances to win when you open trades solely in the trend direction. The point here is to utilize mid-trend occasions than on sentiment switches.
Actually, it should be rather considered as a filter then provider or buy/sell signals, so let’s see how to get the most of it.
How to use the indicator in practice?
The best approach is to work out some powerful combination of some entry point gauge and this filter discussed here. As an example, let’s take the Vulkan profit that display simple buy/sell trading arrows.
You can clearly see how risky is taking counter-trend trades. Without the histogram readings, following these arrows would be completetly random. On the other hand, when both signals are aligned, the sell signals from the above example chart were always profitable and had positive outcomes.
Bottom line
In essence, this indicator serves as a complementary tool. Don’t be mistaken, when used properly it significantly elevates success rate. It can be easily applied to almost any strategy as well as with other technical tools.
