Trend indicators
A trend is one of the most important market conditions, thanks to which traders make money.
Indeed, a trend is always characterized by a purposeful movement either up or down, so if it is identified in a timely manner and a position is opened in its direction, profit will not be long in coming.
It would seem that there is nothing easier than seeing the direction of the market and trading in its direction. However, in practice, everything is much more complicated, since you will never get a clear direction of the market, and if its outline has become very clear, then, as a rule, this movement is coming to an end.
Even Dow many years ago said that when a trend becomes very obvious, and all players begin to move in its direction by inertia, a turning point occurs, because a smarter player with capital, and this includes banks, already understands in advance that the asset overrated and start working against the crowd.
Trend indicators allow you to quickly and clearly determine the direction of the market, and they are often used to filter positions in your own trading strategies. Also, such scripts are simply irreplaceable when trading on pullbacks, because if you can understand the global trend.
You will never consider the next pullback as a new movement, but will only benefit from adding to the existing trend at a favorable price, which greatly reduces risks and increases profitability.
On our website in the “ Indicators ” section there are a large number of useful tools, so we decided to highlight in this article, in our opinion, the most worthy of them.
Examples of trend indicators.
SCALPER MA is a foreign development that allows you to work on short time periods. Simply put, SCALPER MA is a trend indicator that is used for scalping .
In addition to the 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 based on a dynamically changing situation.
It is worth noting that the readings are wave-like, so each new micro trend is considered as a new one, which allows scalping without lagging signals.
TREND MAGIC is a script that combines, in fact, almost two incompatible things, namely the ATR volatility indicator and the CCI oscillator. TREND MAGIC, unlike the previous indicator, is designed to work on higher time frames and serves mainly to determine the current direction.
TREND MAGIC draws a line on the chart in two colors, which changes depending on the change in trend direction. The indicator can be used as a signal, however, when the trend changes, there is a clear lag, so it is most often used when a line breaks out in the direction of the trend.
PARABOLIC SAR - not only shows the current direction of the trend, but also helps the trader with placing stop orders, as well as trailing. This indicator is present in any trading platform, and believe me, for good reason. No matter what anyone says, it is PARABOLIC SAR that will help you figure out the search for the point of setting a stop order, the entry point, and will also help you filter your transactions from entering against the trend.
The most interesting thing is that PARABOLIC SAR can be successfully used on both small and large time frames, so you can often find this indicator in both scalping and swing strategies.
During this review, only a small number of trend indicators that are presented on our website were considered. However, it is these three multi-directional tools to choose from that will help the raider permanently solve the problem of determining the direction of price movement on the selected timeframe.