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The trend trading indicator Trend Arrows is a trading algorithm built on support and resistance levels to determine the current trend and open trades in this period. The indicator draws support and resistance lines on the price chart in the form of colored arrows that form a line. To calculate the indicator values the average price of a currency pair for a certain number of bars is used. Thus, the indicator allows being aware of the necessary information about the current trend and trade at that moment.
The Trend Arrows indicator is suitable for use on any timeframes with any currency pairs.
Input parameters
The Trend Arrows indicator settings consist of several sections. For example, the Input Parameters section is responsible for its technical work, the Colors section is for changing the color gamut and thickness of values, and the Levels section is for adding signal levels to its window.
- iPeriod - the number of bars used for calculations. The default value is 15.
- iFullPeriod - period of the full number of used bars. The default value is 1.
Indicator signals
It will not take much effort to open certain trades using the Trend Arrows indicator, since the algorithm for using it is extremely simple. First it is needed to determine the current trend by taking into account the color of the current arrows and their general direction. If the indicator determines an uptrend, buy trades are opened, if the trend is down, sell trades. In both cases, the trade is closed at the moment the current trend changes.
Signal for Buy trades:
- All current arrows move up and have a color with a growth value.
Upon receipt of such conditions, a long position can be opened on a signal bullish candle, due to the presence of an uptrend in the current market. Close the trade when the current trend changes, namely at the moment when the arrows change direction and color. This will allow considering opening new trades.
Signal for Sell trades:
- Indicator arrows move from top to bottom and have a color with a falling value.
Upon receipt of such conditions, a short position can be opened on the signal candle. It should be closed when the current downtrend changes, which will allow considering the opening of new transactions at the moment when the arrows change their color and general direction.
Conclusion
The Trend Arrows indicator is a very effective trading algorithm, thanks to which trend trading is made not only very easily, but also very profitable. To increase the chances of profitable trading, it is recommended to use the indicator with additional tools and advisers. And before using the indicator in practice, use a demo account.
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