Trend Magic Indicator MT4
Platform: MT4 Type: Trend Last update: September 26, 2024The Trend Magic Indicator for MT4 provides an excellent trading solution for beginners who want to follow trends. It accurately identifies trend conditions and generates buy-sell signals on a daily basis. What’s more, it has consistently demonstrated a high-performance level in signaling forex trades over a proven period of time.
Anatomy of the indicator
The indicator appears as a singular line on the activity chart, dynamically changing its color to represent the market sentiment. A blue color indicates a bullish market with the price closing above the indicator’s level, while a red color signifies a bearish market as the price closes below the indicator’s level.
Trend Magic Explained
The Trend Magic indicator utilizes the powerful combination of the Commodity Channel Index (CCI) and Average True Range (ATR) to determine the direction of the market trend and the current positions of the trendlines. The CCI compares the current price to its historical average to generate accurate buy-sell signals. Meanwhile, the ATR serves as a volatility indicator, assisting in assessing the ideal entry and exit points for trades. Initially, the ATR was primarily used to measure the volatility of commodities.
Buy Conditions
Follow these steps for a long trade:
- Trend Magic turns blue
- Price floats above the signal line
- Bullish price pattern occurs
- Set stop loss a few pips below the last market swing low
- Take profit or exit trade whenever opposite signal appears
Sell Conditions
Follow these steps for a short trade:
- Trend Magic turns red
- Price flows below the signal line
- Bearish price pattern occurs
- Set stop loss a few pips above the last market swing high
- Take profit or exit trade whenever opposite signal appears
Summary
The Trend Magic indicator for MetaTrader 4 is a reliable trend indicator that does not repaint, making it an excellent choice for active traders seeking effective trend-following solutions. Moreover, this indicator does not exhibit any lagging problems when generating trend signals. It promptly generates trend alerts as soon as any trend-reversal situations occur in the market.
