Trend direction indicator.

Continuing with the topic of trend indicators, we present to you another tool that allows you to determine the current trend direction in Forex or another financial market.

The trend direction indicator analyzes historical price values ​​and continuously monitors their changes, allowing you to quickly display signals on the trading terminal chart indicating the likelihood of a trend reversal.

The script combines ease of use with relatively high efficiency, making it suitable for trading even for inexperienced traders.

Immediately after installation and launch, the trend direction indicator will appear in a separate window below the currency pair chart. Its operation is conveyed by two horizontal curves, one red and one green.

Traditionally, red symbolizes a downtrend, while green symbolizes an uptrend. The behavior of the lines is very similar to that of the Stochastic indicator , which also has a zero line and two levels.

Buy - the green line crosses the red line from the bottom up and continues its upward movement, with the red line typically moving downward.

Sell - the green line crosses the red line downward and continues its downward movement.

When using the trend direction indicator, not only which line is higher but also its direction matters.

The only settings you need to adjust are Bands_Period and Count_Bars

Bands_Period - as the name suggests, specifies the time period ( time frame ); the default value is 20. Experimenting with the settings can help you find the optimal value.

Count_Bars - sets the interval used to analyze historical data. For example, when trading on M15, why analyze the trend for a week? Using data from just a day or even the previous few hours will suffice. The shorter your working time frame, the smaller this parameter.

Overall, this is a fairly acceptable trend direction indicator. It's not that it significantly anticipates current price movements; rather, it simply reflects their dynamics. But by studying the history of its work, you can find a lot of interesting patterns that can then be used when opening transactions.

Download the Trend Direction Indicator.