Sign In with Google
Sign In with Facebook
The Trigger Line with Arrows indicator, also known as TLA, is used in trading to determine the current market trend and find the best moment to open a position in this period. To perform these functions, the indicator uses two versions of a modified moving average of different periods, which helps to determine the current trend very accurately and make effective trades during the period of its duration. The Trigger Line with Arrows indicator is displayed directly in the main window of the price chart as a solid moving average, which consists of moving averages with different periods and colors, which, in turn, bifurcate and merge into one under certain conditions. In addition, the chart also contains arrows with a certain color and direction, which during a certain trend will point to a signal candle. Thus, positions using this indicator will be opened taking into account the values of its line and arrow.
The indicator does not lose its effectiveness and works exactly the same on any timeframe, with any currency pairs, so the choice of these units will not affect trading.
Input parameters
The Trigger Line with Arrows indicator has only three input parameters that can be changed to build own trading system. The remaining sections in its settings do not affect its technical operation, for example, the Colors section is responsible for the color scheme and thickness of the indicator values.
- Period - parameter responsible for the period of the indicator. The default value is 24.
- LSMA Period - the period of the modification moving average used in the indicator calculations. The default value is 6.
- ShowArrow - parameter responsible for drawing arrows on the chart as a signal. The default value is true.
Indicator signals
According to the concept of operation and use, the Trigger Line with Arrows indicator can be attributed to the group of arrow indicators, since the formation of an arrow on the chart by the indicator is considered its main signal. That is, as soon as an arrow appears on the chart, the position is opened taking into account the color and direction of this arrow. The arrow itself appears only during a period of a certain trend, at the moment when the moving line merges into one solid line, and does not bifurcate. This will indicate a strong market movement, which will allow making a possible trade with a good profit.
Signal for Buy trades:
- Signal candlestick closes above the upward moving average.
- An arrow is formed under the signal candle, pointing up and colored in color with the growth value.
A trade can be opened at the close of a candle, after the formation of such an arrow, due to the presence of an uptrend in the market, and taking into account the location of the candle. Stop loss can be set at the point of a recent local extremum. Close the trade immediately after a new arrow appears on the chart or the color changes and the direction of the moving line. This will indicate the end of the current trend, and the possibility of opening a new trade during a new market movement.
Signal for Sell trades:
- The candle should be below the moving average, which in turn should be going down and have a color with a falling value.
- An arrow should form on the signal candle, which is also directed down and colored in color with the value of the fall.
Upon receipt of such conditions, a short position may be opened at the close of the signal candle due to the presence of a downtrend. A stop loss order should be placed at a local extremum point. The trade should be closed upon receipt of the opposite conditions, namely, when a new arrow appears or the color and direction of the moving average change, which will indicate a change in trend, which makes it possible to open new trades.
Conclusion
Trigger Line with Arrows is a very smart and logical trading algorithm designed to quickly and accurately determine the current trend and its strength, as well as find the best moment to enter the market. The indicator is very effective and, also because it carefully filters signals through the use of modification sliding. In addition, the indicator is very easy to use, so it is suitable even for beginners. However, before using the indicator, it is still recommended to use a demo account.
You may also be interested The Trend Flex trading Indicator for MT5
