Trender indicator Guide for MT4/MT5
Trender indicator for MT4 is a useful technical tool when it comes to trend anticipation. In fact, this instrument represents a price following indicator. Thus, it provides traders with significant signals about future price movements in forex markets. As well, the MT5 Trender indicator can alert traders when detecting potential forex reversals signals. Therefore, traders frequently use it in volatile markets. In this guide, we’re going to discover how we can take advantage of it when you’re trading.
Trender indicator FAQ
What is a Trender indicator ?
Indeed, a trender is the general direction of the prices of an asset on the trading chart. Traders depend on it to decide whether they want to exit or enter a market. There are 3 types of trends that investors should be aware of:
- DOWNTREND: it is called DOWN because prices are price falling continuously. Generally, it occurs when the supply exceeds the demand of a certain asset. In the period of a downtrend, prices swing between higher lows and lower lows.
- UPTREND: it is referred to as UP because prices are rising continuously. Generally, it occurs when the demand exceeds the supply of a certain asset. During an UPTREND, prices Swing between Higher Highs and Lower Lows.
- SIDEWAYS TREND: refers to a period where prices swing between two levels. However, once the price breaches one of the levels, it refers to the end of the current trend. In other words, if the price breaches the upper levels, it’s an UPTREND else, it’s a DOWNTREND.
How to Trade with it ?
Trading using the trender indicator is quite simple. As it contains one line that changes color depending on the Trend, a Greenline indicated the start or the continuation of an UPTREND and a Red line indicates the start or the continuation of a DOWNTREND.
So trading using the Trender works as follows:
- Buy or enter a long position if the line becomes green.
- Keep if: the line is still green.
- Sell or enter a short position if the line becomes red.
However, it is advised to use another technical indicator to get a confirmation before proceeding to Buy/Sell. Because as we stated earlier, the indicator is based on price movements and manipulations could occur, leading to a false alarm.
Trender indicator is a technical analysis tool classified as a trend following indicator as it follows the prices of a certain asset and builds on a price basis a line that indicates the current trend destination.
Furthermore, the line fluctuates as the prices swing, it is a customizable indicator that allows you to choose two colors, one for the UPTREND and one for the DOWNTREND. However, in default, the line comes either with Red and green for the Trender Indicator Tradingview or Green and red for the MT4 indicator. In other words, the line changes its color depending on the trend, Green for a Bullish UPTREND and Red for a Bearish DOWNTREND.
In fact, trend traders use this indicator frequently. But unfortunately, the indicator doesn’t detect Forex sideways trends, it only gives you an indication of whether the current trend is bullish or Bearish. Meaning that you have to observe closely before proceeding to action.
Download Trender Indicator for MT4
Trender indicator for MT4 is a popular Metatrader 4 tool used among trend traders. Furthermore, it can detect the current trend and any possible trend reversal signal. Thus, in the following example, we’re going to apply this MT4 indicator on the EURUSD H4 chart.
As observed, the indicator gave three signals to sell the asset before the first downtrend. However, at the End of the down movement, the indicator signals a potential uptrend. As a result, traders who bought at the signal should have secured a high return for their investment as it was a long continuous uptrend, that ended which signals an upcoming potential forex reversal signals.
Download Trender Indicator for MT5
Trender Indicator for MT5 is one of the most used trend-following indicators in MetaTrader 5. In fact, it works on every asset and time frame available. In the following example, we’re going to analyze the EURUSD H4 on the MetaTrader platform using the MT5 Indicator. As the chart displays, the asset is so volatile. Hence, the indicator detects several of trade entries and exit trades points.
So, starting with Points 1,3,5, and 7, those points are signals of a trend reversal, they represent exit points, which means that traders should sell immediately the Forex currency pair to avoid losses. However, Points 2,4, and 6 are signals of the start of an uptrend, a short one in this example. Thereby, it means that the MT5 indicator alerts traders of the potential benefits they could make if they enter the market immediately. Similarly, Point 8 is a signal of a long and towering uptrend that could generate an enormous profit. Conversely, Point 9 is the signal of the end of the previous up tendency. This means that traders should sell the currency pair immediately so they make lock in the highest possible profit.
- The Trender indicator is a price analyzing tool that helps in detecting price fluctuations.
- The indicator is classified as a Trend following indicator similar to the trend bar indicator.
- It has 1 line that changes color each time the trend changes.
- Yet, the indicator doesn’t detect sideways trends, thus, investors should be careful while using it.
- Professionals advise using other technical indicators to confirm the potential trend reversal before taking action.