Trend Traffic Indicator MT4
Platform: MT4 Type: Trend Last update: June 6, 2025The Trend Traffic Indicator for MT4 is a momentum tool that provides traders data regarding market direction, trend strength and potential turning points. It was created with an emphasis for clarify of readings. Generated signals are good fit for scalpers, day traders, and swing traders looking for clean trend confirmation.
Example chart:
How does the trend traffic indicator for mt4 work?
The indicator consists of multiple elements including colorful histogram and two exponential moving averages.
There is also an important zero line (0.00 level) which acts as market’s equator. Everything above suggests bullish control, while readings below indicate bearish dominance. What’s more, a crossover between these two EMAs provides additional confirmation and shows current momentum.
Understanding histogram colors
Green bars appear when either bulls or bears have established clear dominance. During uptrends, green bars confirm strong buying pressure. During downtrends, they signal strong selling pressure. These are your high-confidence zones for trade entries.
Yellow bars warn you that the current trend is losing steam. The market is likely transitioning between buyers and sellers, making it a bit risky time for new positions.
Red bars occur when trend reversal becomes more possible. They take place when the dominant force (bulls or bears) is about to lose control to the opposing side. Their appearence helps avoiding trades against new trends.
Conditions for buy/sell entries
A valid buy setup happens when the fast EMA crosses above the slow EMA and both move above the 0.00 line. If green bars are being formed at the time, it means the buyers are taking the control and bullish momentum is building. Traders should consider long position, especially if price action supports it (like a break of resistance or strong engulfing candle).
Below EUR/USD H1 chart shows such scenario.
Similarly, a sell setup is valid when the EMAs cross below the zero line and green histo bars appear under the 0.00 level – it’s a sign that sellers are in charge. Confirm the move with bearish price action and look for an opportunity to short the market.
Indicator settings
In the settings tab, there are 4 customizable inputs:
- High_Period_Comparison – sets the reference period for identifying the broader trend. Higher values smooth out noise but react slower.
- Fast EMA – controls the speed of the fast-moving average. Lower values make it more responsive to short-term price changes.
- Slow EMA – sets the length of the slow-moving average. A higher value captures longer-term trend direction.
- RedZone – defines the threshold for showing red histogram bars. Lower values trigger earlier reversal warnings.
Conclusion
The Trend Traffic Indicator for MetaTrader 4 offers a clean, efficient way to trade with the trend by eliminating guesswork. It can be successfully used as a standalone tool, but pairing it with additional analysis improves accuracy.
