Trend Envelopes Indicator MT4

MT4 Free Download

The Trend Envelopes Indicator for MT4 is rated as one of the best forex trend indicators on the market and it’s available to free download. It gained recognition among traders across the world due to its very approachable and reliable signals. It’s an awesome trend filter that can be applied to any existing strategy to increase the success rate even more.

Sounds interesting? Let’s take a closer look at it and bring some practical trading examples.

Introducing the Trend Envelopes Indicator

MT4 Indicator Overview

The download link of the Trend Envelopes MT4 indicator is placed at the bottom of this post. Once you’re done, your trading chart should look similar to the example below.

Trend Envelopes Indicator Example Chart

As you can see, it plots the trading signals as dynamic price-following bands working in a bit similar manner to the Moving Average forex indicator.

As the general approach, price closing and holding above the envelope level is considered as the bullish trend and suggests buy trade opportunities. On the other hand, the bearish trend is valid when the price flows and holds below the signal line.

The Trend Envelope’s levels are displayed in two different colors which one should understand for basic usage. When there is a light blue Envelope line, it means an upward momentum is going on. Conversely, an orange Envelope line reflects downward momentum.

Settings

There are a few variables you can customize to fit your personal preferences and trading strategy. You can increase its sensitivity if you are a scalper, or make it less sensitive if you prefer a longer-term swing trading approach. We are referring to the MA_Period property.

Trend Envelopes Indicator Settings

How To Trade With The Trend Envelopes Indicator?

Generally speaking, the signal trigger is based on the Envelope switching below and above the price. Let’s deep dive into how to exactly use that forex indicator in a few simple steps.

Trend Envelopes: Buy Signal

Envelope line turns light blue
Price bars position is above the signal line
Open long trade when the above conditions are met
Set stop loss a few pips below the level defined by the band
Take profit whenever the opposite signal appears or close it after achieving a satisfying risk-to-reward ratio

Trend Envelopes Indicator Buy Signal

Trend Envelopes: Sell Signal

Envelope line turns orange
Price bars position is below the signal line
Open short trade when the above conditions are met
Set stop loss a few pips above the level defined by the band
Take profit whenever the opposite signal appears or close it after achieving a satisfying risk-to-reward ratio

Trend Envelopes Indicator Sell Signal

How to set up the Trend Envelopes indicator in MetaTrader (MT4)?

Installation Guide

Download the Trend Envelopes.rar archive at the bottom of this post, unpack it, then copy and paste the trend-envelopes.ex4 or trend-envelopes.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.

Conclusion

The Trend Envelopes indicator is definitely worth checking out. It provides all the necessary elements for making a trade decision, including entry and exit points, trend direction, and effective stop-loss level. That forex indicator fits all kinds of currency pairs and time frames. It’s a trend-follower, therefore it generates the best results during strong market momentum conditions. Don’t forget to play with the settings as they change its responsiveness. Feel free to utilize it as a standalone trading tool or add it to any forex strategy of your choice.