Trend line indicator
Trend lines are the basis of most strategies used in financial markets. If desired, they can be constructed manually using the capabilities of the trader's terminal, but a simpler solution is to use the "Trend Line" indicator.
This tool will quickly plot support and resistance lines on a currency pair chart based on a specified time period.
This will allow you to implement a price channel trading strategy without wasting time manually constructing channel boundaries.
Another advantage is that the trend line indicator automatically rebuilds lines simultaneously with the movement of the currency pair chart, which is not possible with manual construction.
Your task is only to install the indicator and enter the initial data or use the default settings.
They are the boundaries of a price channel, the width of which depends entirely on the settings you enter.
You can find a breakdown of all the settings required for this script to function correctly in the archive along with the program itself.
The price channel construction script is based on the well-known and quite popular ZigZag indicator , so some of the settings you enter regulate its operation.
What does using the trend line indicator provide?
1. Helps determine the trend direction on the selected time frame. After setting the indicator, you can quickly see which way the support and resistance lines are pointing. If the indicator points upward, the market is in an uptrend; if downward, a downtrend is observed.
2. Construct trend lines based on the most significant minimum and maximum points over a given time period.
3. Determine the levels for placing pending orders.
4. Identify possible price reversal points and find the most suitable points for entering the market.
Strategies based on the trend line indicator
1. Breakout – Using the drawn lines, we identify the points where a price breakout is likely to occur and place two pending orders in different directions. To protect against false breakouts, don't forget to set a stop-loss immediately.
2. Reversal – if the price channel is wide enough, you can use a reversal strategy. In this case, a position is opened immediately after the price has bounced off one of the lines and moved in the direction of the main trend.
If used on short time frames, the script can serve as a basis for trading using a scalping strategy. Trades are opened based on price movement in the price channel in both directions, after a reversal at one of the lines.
The trend line indicator can also be used in any of the Forex trend strategies to find entry points into the market based on the received data on price movement in the price channel
Download trend line indicator.
If you want to use the strategy of the same name, it is presented on the page http://time-forex.com/strategy/trend-lines
