Trend direction indicator.

Continuing the topic of trend indicators, we present to your attention another tool that allows you to determine the current trend direction in Forex or other financial markets.

Trend direction indicator - analyzes historical price values ​​while constantly monitoring their changes, which allows you to quickly display signals about the likelihood of a change in trend direction on the chart of the trading terminal.

The script combines ease of use and fairly high operating efficiency, which makes it possible for even a little experienced player to use it for trading.

Immediately after installation in the trading terminal and launch, the trend direction indicator will appear in a separate window below the chart of the currency pair. His work is conveyed through two horizontal curves of red and green.

Traditionally, red symbolizes a downward trend, and green, respectively, an upward trend. The behavior of the lines is very similar to the operation of the Stochastic indicator ; there is also a zero line and two levels.

Buy - the green line crosses the red one from the bottom up, and continues to move in the upward direction, while, as a rule, the red line rushes down.

Sell ​​- the green line crosses the red line in a downward direction and continues its downward movement.

When using a trend direction indicator, not only which line is higher plays a role, but also the direction of its movement.

Of the settings, you should only touch the parameters Bands_Period and Count_Bars

Bands_Period - as the name suggests, here we indicate the time period ( time frame ), the default value is 20. By experimenting with the settings, you can identify the most optimal indicator.

Count_Bars - sets the interval that is used to analyze historical data, for example when trading on M15. Why analyze the trend for a week, it will be enough to take data only for a day or even a few previous hours.

That is, the shorter your working time frame, the smaller this parameter. In general, it is a fairly acceptable indicator of the direction of the trend, not to say that it is much ahead of the existing price movement, but rather simply reflects the dynamics of its movement. But having studied the history of its work, you can find a lot of interesting patterns that can then be used when opening transactions.

Download Trend Direction Indicator.