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Trend Strength Trio, which can also be called TST, is a trading algorithm that, based on its calculations, allows determining the current market trend and its strength, and accordingly open a position in its direction. The indicator is presented in the lower window of the price chart in the form of three lines, which in depending on the current market conditions,they change their direction and location relative to each other, thus helping to determine the market movement. At the same time, in the indicator settings, at own discretion, it can be turned off one of the indicator lines on the chart. Thus, the Trend Strength Trio indicator is used to open positions, taking into account the direction and location of its lines.
The Trend Strength Trio indicator is suitable for any timeframe and currency pair, however, hourly timeframes and pairs with high volatility are considered the most suitable.
Input parameters
The settings of the Trend Strength Trio indicator consist of only three input parameters, which are mainly responsible for the visualization of the indicator, practically without affecting the technical process of its operation. The Colors section in its settings is responsible for the color and thickness of its lines, and the Levels section is for adding to its window signal levels.
- Line2Visible - parameter responsible for the presence of the second additional line in the indicator window. The default value is true.
- Line3Visible - the presence of the third additional line in the indicator window. The default value is false.
- Step - the period of the step performed by the indicator. The default value is 5.
Indicator signals
Basically, all indicators that are compiled on moving or other lines have almost the same concept of work, Trend Strength Trio is no exception. That is, the Trend Strength Trio indicator generates a signal, like similar indicators, at the moment when its lines begin to cross between themselves and change their direction. And thus, it is with the appearance of a combination of conditions compiled according to these values that a position can be opened in the direction with the current market trend.
Signal for Buy trades:
-The lines of the indicator intersect so that the main one is above all, followed by line 2, and then 3. At the same time, all of them should be located above level 0.
Upon receipt of such an intersection of lines above level 0, a long position is opened. Such a position should be closed immediately after the lines begin to re-cross, and at this moment it can be prepared to open new positions due to a change in the uptrend of the market.
Signal for Sell trades:
-After crossing the indicator lines, they are located so that line 3 is above all, behind it is line 2, and below is the main one. In this case, all of them are below the signal level 0.
Upon receipt of such indicator conditions, a sell trade can be opened. It should be closed after the lines begin to intertwine. At this moment, it should be considered the possibility of a change in the current downtrend and prepared to open new trades.
Conclusion
The Trend Strength Trio indicator is a very efficient and logical trading algorithm, which is also very easy to use. With it, it can be determined the current trend and open a trade in its direction. Thus, the indicator can be used without any additional tools, however, in strategies, the indicator is more accurate, as it is confirmed by other indicators or tools. Like all other indicators, Trend Strength Trio requires preliminary practice, which is carried out by using a demo account.
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