Advanced trend indicator for MT5, trend strength for a specific currency
In the Forex currency market, it is quite difficult to determine the real direction of the trend for a specific currency.
The reason for this lies in the fact that the price of a certain monetary unit can simultaneously rise against one currency and fall against another.
For this reason, it is not always clear how strong the existing trend is and what its reason is: the strengthening of the analyzed currency or the fall of the second currency in the currency pair.
Therefore, in order to objectively assess the existing trend direction, you need to do this comprehensively, in relation to several assets at once.
After downloading the tool at the end of the article and installing it on the chart, you get the following picture:
A window on the chart itself – it displays trend strength indicators calculated based on trends for several currency pairs. The greater the number of currency pairs with an upward trend, the higher the value in the table and, accordingly, the stronger the upward trend for the selected currency.
A separate window of the MT5 trend indicator - which is located at the bottom of the chart window, displays the trend direction for the currency pairs used in the calculations. The current direction is displayed by green and red arrows; if there is no arrow, a flat is observed in the currency pair.
In general, the tool is quite interesting; its work is based on two indicators, Moving Average and ADX, which determine the direction of the trend.
The trend indicator for MT5 is configured by default; when added to the chart, all you can do is change the color scheme for ease of use.
Among the disadvantages, it should be noted that you cannot add currencies and currency pairs at your discretion; by default, the script works with USD, EUR, GBR, CHF, CAD, JPY, AUD, NZD, but this is already good.
The tool is distributed completely free of charge and can be downloaded either from the link below or directly from the Market of the MT5 trading platform.