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The Advance Trend Pressure indicator was created to determine the current market trend and its strength. It displays three lines on the chart: the main and two signal lines, which are indicators of a down or up market trend. For each of these lines, a certain price is used, to which the calculation will be applied, so for example, the main line calculation will be applied to the Close-Open price, the uptrend line calculations to the High-Close and Open-Close prices, and the downtrend line calculation to the Open-Close, High-Open and Close-Low prices.
Advance Trend Indicator Pressure is often used with additional technical indicators that will confirm its signals, so when choosing a timeframe and a currency pair, it should be taken into account the indications of an additional one. And the Advance Trend Pressure indicator itself can be used on any timeframe, with any currency pair.
Input parameters
The Advance Trend Pressure indicator has only two parameters in its settings, so its installation will not be difficult.
- -Period-parameter responsible for the value of the period of the indicator line. The default value is 14.
- -Show lines Up and Down- an indicator parameter that, when set to Yes, displays two lines on the chart, indicating a bullish or bearish trend. The default value is No.
In addition, the indicator settings contain parameters that are responsible for the color gamut and width of the indicator lines. Also, additional levels can be added to the indicator window, the intersection of which can be considered a certain signal.
Indicator signals
Advance Trend Pressure is represented on the chart as one line, or as three lines when Show lines Up and Down is selected. For own convenience, level 0 can be added to the indicator window, which will cross the main indicator line. If the line crosses level 0 from below up, then the trend is up, if from top to bottom, then the trend is down. If the Show lines Up and Down parameter is set, then the signal will be the intersection of the Up and Down lines.
Signal for Buy trades:
- -The main line of the indicator moves up and crosses the level 0 from the bottom up, being above it.
- -When setting the Show lines Up and Down parameter, the signal to buy can be considered the intersection of the Up and Down lines so that the Up line is above the Down line.
After the formation of such conditions on a certain candle, a long position can be opened. It should be closed after the line crosses the level 0 down or the reverse intersection of the Up and Down lines.
Signal for Sell trades:
- -A downtrend is determined on the market, determined by the crossing of the level 0 indicator line from top to bottom.
- -If the Show lines Up and Down parameter is set in the indicator settings, then a sell signal can be considered the intersection of these lines so that Down is higher than Up.
After the formation of such conditions on a certain candle, a short position can be opened, which should be closed after the line crosses the level 0 again, or changes in the position of its signal lines.
Conclusion
The Advance Trend Pressure trading indicator is extremely easy to use, so it can be used even by beginners. At the same time, its signals are not always accurate, so it is recommended to use this indicator in various strategies, where it can serve as an excellent assistant in determining the trend.
