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The DAT Trend indicator is a trading algorithm that is used to trade during a certain market trend. Its calculations are based on determining the direction and strength of the current trend and finding the optimal moment to open positions taking it into account. The indicator is displayed in the lower window of the price chart as a channel, made up of three lines, as well as its signal color line with arrows formed above or below it. These indicator values, namely its channel and the moving line with arrows, serve to determine the direction of the current trend, as well as open deals in this period.
The DAT Trend indicator can be used to trade any currency pair on any time frame.
Input parameters
The indicator settings affect the overall functioning of the indicator. Thus, the Input Parameters section is used to change the values of its technical work, the Colors section is used to change its general visualization, and to add signal levels to the indicator window, the Levels section is used.
-TrendPeriod - value of the indicator period. The default value is 40.
-Ratio - value of the indicator calculation coefficient. The default value is 200.0.
-multiplier - indicator calculation multiplier. Default value is 2.0.
-BandPeriod - the period of the indicator channel bands. The default value is 20.
-Show Band - parameter of the presence of a channel in the indicator window. By default, it is set to true.
-method selection - parameter for smoothing moving averages used by the indicator in calculations. The default value is 0.SMA 1.EMA 2.SMMA 3.LWMA.
-method type - the type of moving average to use. The default value is 0.
-price selection - the type of price to which the indicator calculations are applied. Default value is 0.CLOSE 1.OPEN 2.HIGH 3.LOW 4.Median 5.Typical 6.Weighted.
-price type - type of price used. Default value is 0.
-Show Signal - parameter for the presence of a signal line in the indicator window. The default value is true.
-Show Title - parameter responsible for the presence of a title in the indicator window. By default, it is set to true.
-Show Value - the parameter of the presence of indicator values in its window. By default, it is set to false.
-CalculationsBars - the number of bars to which the indicator's calculations are applied. The default value is 500.
Indicator signals
The DAT Trend indicator is very easy to use due to its convenient and simple visualization. To open a certain trade, it should be taken into account only the current values of the indicator, namely the direction of its channel, its intersection with the signal line and its color, and the already formed arrow determines the moment of opening the trade itself. If the current trend of the market is upward, buy trades are opened, and if the trend is downward, sell trades. When the current trend changes, in both cases, trades are closed.
Signal for Buy trades:
- The indicator channel moves up, with the middle line having a color with a growth value. The signal line goes beyond the boundaries of the channel and has a color with a growth value. An upward arrow is formed under it.
When conditions are received that characterize the presence of an upward trend in the current market, a buy trade can be opened. The current trade should be closed and a new one should be considered when the current trend changes, namely when receiving reverse conditions from the indicator.
Signal for Sell trades:
- All lines of the indicator are directed downwards. At the same time, its middle and signal lines have a color with a growth value. The signal line crosses the lower border of the channel and an arrow is formed above it, pointing down.
A sell trade can be opened immediately upon receipt of such conditions. At this moment, a downward trend is determined in the market. It should be closed after receiving the opposite conditions from the indicator, that is, when the current trend changes. At this moment, one should consider opening new trades.
Conclusion
The DAT Trend indicator is a very effective trading algorithm that allows trading during a certain trend period. The indicator is perfect for use in various trading strategies, as this in turn will increase the accuracy of its signals.
