trend flex indicator for mt5

The Trend Flex indicator for MT5 is a momentum tool designed to measure trend strength and detect potential market reversals. It’s actually based on the original work by John Ehlers, and it tries to reduce the lag that is typical for moving average-based indicators.

Example chart:

trend flex indicator example chart 1

How to trade with the trend flex indicator for mt5?

The indicator consits of two dynamic lines: a fast line (blue) and a slow line (orange dotted). Obviously, the fast line reacts quickly to price movements, while the slow line smooths out fluctuations, giving more general view on the market trend.

The signals are generated based on interactions between them, namely:

  • Bullish signal: valid when the blue fast line crosses above the orange dotted line. Such setup suggests upward momentum and a long trade opportunity.
  • Bearish signal: opposite scenario applies. It’s valid when the blue line crosses below the orange line. This tells about weakening momentum and traders should consider a short trade.

Another important aspect is the distance between the lines. A wider gap signals strong momentum. On the other hand, narrow spacing alerts about trend exhaustion and possible reversal in the making.

Practial ideas for trend flex application

So there are couple of ideas for taking advantage of the trend flex.

  1. As a primary strategy: use the standalone core signals as described above.
  2. As a confirmation tool: use trend to verify signals from other indicators or price action patterns. For example, confirm a bullish chart pattern when the gauge shows an upward cross.
  3. For trend strength assessment: watch the gap between lines to determine when to hold positions longer (wide gap) or prepare for potential reversals (narrowing gap).

trend flex indicator example chart 2

Indicator settings

When it comes to the settings, there are only two options available. Users can change periods of the fast and slow trend-flex, so adjustments of reactivity is possible (e.g. for characteristic of given asset or simply for personal preferences and trading style). Besides that, users can change color, but that’s minor.

Conclusion

The Trend Flex Indicator for MetaTrader 5 allows to understand trends better than moving averages, however it has some limiations as this is still a lagging indicator. It’s a good idea to use it in conjuction with other technical indicators for more holistic strategy.


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