Proven Forex trend indicators, selection of the best scripts
Much has already been said about the importance of identifying the main trend of price movement on Forex. There are many ways to solve this problem, but the most effective remains the use of special scripts.
Trend indicators most accurately determine the direction of an existing trend. Scripts also determine a number of other characteristics used in technical analysis,
such as trend strength and reversal probability, which can be helpful when planning a trade.
There are a huge number of such tools, and the MetaTrader trading platform comes with over a dozen by default.
In addition, there are quite a few trend indicators created by third-party developers; we will try to get acquainted with the most effective of them.
The most effective indicators showing trends
The results are displayed on the currency pair chart itself, in the form of multicolored bars that follow the trend line.
The size of the bars allows you to assess the strength of the underlying trend and any changes in the existing trend. The script allows you to quickly create your own trading strategy.
It is most effective on timeframes of no more than one hour, but can also be used on longer timeframes.
The trend indicator itself and its full description can be found here: http://time-forex.com/indikators/forex-profit-boost
Zig-Zag – the main advantage of the script is that it can be found in literally any trader's terminal, including MetaTrader.
This further confirms the effectiveness of Zig-Zag, as MetaTrader truly does offer the best technical analysis scripts.
Zig-Zag itself is quite simple: it draws a line that follows the movement of a currency pair on a Forex chart.
This reveals not only the trend but also technical analysis patterns that signal a trend reversal or confirm an existing trend.
Trend indicators like Zig-Zag are used both to determine the trend and to set stop-loss and take-profit orders.
A detailed description of Zig-Zag can be found at http://time-forex.com/indikators/zig-zag .
Ultra Wizard – when considering trend indicators, it is impossible not to mention the most interesting and effective of them.
With Ultra Wizard, you can determine the direction of price movement, its strength, and the likelihood of continuation.
The tool performs a comprehensive analysis based on five popular indicators, minimizing the risk of error due to multiple signal filtering.
Therefore, this script is sufficient for analysis.
You can learn more about Ultra Wizard on the page - http://time-forex.com/indikators/ultra-wizard
Our website also features other, equally interesting trend indicators; you can find them in the relevant section - http://time-forex.com/indikators
In order to most accurately determine the direction of the existing trend, you should follow a few simple rules:
An integrated approach : we simultaneously install several scripts on a single currency pair chart to filter out false signals and open trades only when the received data matches.
Fundamental analysis – it's always useful to know not only the direction but also the reason for the current trend. Therefore, we study news and analytics to identify the causes of current forex market conditions.
Monitoring adjacent timeframes will allow you to notice market changes earlier and react more quickly to price reversals.
