Trend indicators
A trend is one of the most important market conditions, enabling traders to make money.
Indeed, a trend is always characterized by a purposeful movement, either upward or downward, so if you identify it early and open a position in its direction, profits will quickly follow.
It would seem that nothing could be simpler than seeing the market's direction and trading in its direction. However, in practice, things are much more complicated, as you'll never see a clear market direction, and if its outline becomes very clear, the movement usually ends.
Even Dow said many years ago that when a trend becomes very clear and all players begin to move in its direction by inertia, a turning point occurs, because smarter players with capital, including banks, already understand in advance that the asset is overvalued and begin to work against the crowd.
Trend indicators allow you to quickly and clearly determine market direction, and they are often used to filter positions in your own trading strategies. Such scripts are also indispensable when trading pullbacks, since understanding the global trend helps you achieve results.
You will never consider the next pullback as a new movement, but rather profitably add to the existing trend at a favorable price, which will significantly reduce risks and increase profitability.
Our website's " Indicators " section contains a large number of useful tools, so we've decided to highlight what we consider to be the most valuable ones in this article.
Examples of trend indicators.
SCALPER MA is a foreign development that allows trading on short timeframes. Simply put, SCALPER MA is a trend indicator used for scalping .
In addition to its obvious functions in recognizing the current trend, the indicator, in the form of arrows, shows its changes, which makes it possible to enter the market in a dynamically changing situation.
It is worth noting that the readings are wave-like, so each new micro trend is considered as new, which allows scalping without signal lag.
TREND MAGIC is a script that combines two seemingly incompatible tools: the ATR volatility indicator and the CCI oscillator. Unlike the previous indicator, TREND MAGIC is designed for higher timeframes and serves primarily to determine the current direction.
TREND MAGIC draws a two-color line on the chart that changes depending on the trend direction. The indicator can be used as a signal indicator, but there's a noticeable lag when the trend changes, so it's most often used when the line breaks in the direction of the trend.
The PARABOLIC SAR not only shows the current trend direction but also helps traders set stop orders and trailing stops. This indicator is available on every trading platform, and believe me, it's worth it. Whatever anyone says, the PARABOLIC SAR will help you find stop order placement points, entry points, and prevent your trades from going against the trend.
The most interesting thing is that the PARABOLIC SAR can be successfully applied on both small and large time frames, so you can often find this indicator in both scalping and swing strategies.
This review covered only a small number of the trend indicators available on our website. However, these three multidirectional tools will help a trader permanently solve the problem of determining price movement on a given timeframe.
