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The Future Trend is a specially developed algorithm, the purpose of which is to identify the current trend and find the optimal point to enter the current market. The indicator is presented in the main window of the price chart in the form of small bars, which, depending on the current market conditions, are one of them is responsible for the upward movement, the second for the downward movement. The indicator makes calculations based on the use of two moving averages, thanks to which the current trend is determined very accurately.
The Future Trend indicator is suitable for any currency pairs, however, the choice of timeframe is limited to the period from M15 to D1.
Input parameters
The settings of the Future Trend indicator, in addition to the sections responsible for its visualization, consist of seven input parameters, changing the values of which to some extent affect the performance of its technical work.
- MA Period - the period of the slow moving average of the indicator. The default value is 50.
- MA Period - the period of the fast moving average. The default value is 1.
- Step - step value of the moving averages of the indicator. The default value is 1.
- Count Bars - parameter responsible for the number of bars interacting with the indicator. The default value is 4000.
- Use T3 - parameter responsible for using the 3rd type of indicator value smoothing. By default, it is set to true.
- b - column size parameter in relation to the price chart. The default value is 0.88.
- Alerts - option to notify when an alert occurs. The default value is false.
Indicator signals
Despite a slightly different visualization compared to the standard moving average, the Future Trend indicator works on the same concept, and even the purpose of these indicators is the same. The indicator is presented on the chart in the form of columns of two colors, and the formation of one is responsible for the dominance of an uptrend, and the other for a downtrend. And at the moment when several columns of the same color form on the chart, taking into account the current trend, a certain position can be opened.
Signal for Buy trades:
- At least three columns are formed with a color with a height value.
A long position may already be opened on a candle with a third column with a growth value. Close a trade follows the same principle, that is, as soon as columns with a color with a fall value begin to appear on the chart. At this moment, it can be prepared for a change in the current movement, and prepared for opening new positions.
Signal for Sell trades:
- On the current chart, at least three columns with the value of the fall are formed.
After the appearance of such a condition, a short position can be opened on a certain candle. It should be closed immediately after at least one column with a fall value appears on the current chart. At this moment, a change in the current market movement is possible, which will allow opening new trades.
Conclusion
The Future Trend indicator is not only as simple as possible, but also very effective in use, since it is based on moving averages - an indicator that is time-tested. In order to adapt to the use of the indicator in practice, it is recommended to use a demo account in advance, which will necessary trading skills.
You may also be interested The Forex Line Trading Indicator for MT4
