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Trend CF is a trading algorithm designed for trading during a certain trend. Thus, the indicator's calculations are aimed at determining the direction of the current trend and its strength, as well as opening a trade in its direction. The indicator is displayed in the lower window of the price chart as a kind of histogram , which, when determining the direction of the current market movement, is painted in a certain color and is located above or below the signal level 0 with its certain part.
The Trend CF indicator is suitable for trading any currency pair on any time frame.
Input parameters
In the settings of the Trend CF indicator, there are only two input parameters responsible for its general functioning, while the Colors section in its settings is responsible for its visualization, namely the color and thickness of the values. To add signal levels to the indicator window, the Levels section should be used.
- Period - value of the indicator period. The default value is 16.
- Price - type of the price to which the indicator calculations are applied. By default, it has the Close price value.
Indicator signals
The Trend CF indicator is very easy to use. To open a certain trade using the indicator, it is needed to determine the current trend and its strength. To do this, it should be taken into account the current color of the histogram and its location relative to level 0. If the indicator detects a strong uptrend, long positions are opened, in while short positions are opened during a period of a strong downtrend. Trades are closed at the moment of weakening or a change in the current market trend.
Signal for Buy trades:
- The histogram of the indicator has a color with a growth value and most of it is above the 0 level.
Upon receipt of such a condition on a signal bullish candle, a buy trade can be opened, due to the presence of a strong uptrend in the current market. Such a trade should be closed upon receiving the opposite conditions, namely at the moment when most of the histogram falls below level 0 or changes its color. At this moment, a possible change in the current trend is expected, which in turn will allow considering opening new trades.
Signal for Sell trades:
- The indicator falls below level 0 and is colored with the fall value.
Upon receipt of a combination of such conditions that characterize the presence of a strong downward trend, a sell trade can be opened on a bearish signal candle. Such a trade should be closed when the histogram is above the 0 level or when its color changes. At this moment, a possible change in the current trend or its weakening, which will allow considering the opening of new trades.
Conclusion
The Trend CF indicator is a very effective trading algorithm that allows you to trade during a strong trend in the current market. The indicator is also very easy to use and suitable even for beginners who can strengthen their trading skills through preliminary practice on a demo account.
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