It is Trend Strength Indicator on MT4 is a momentum indicator that indicates the strength of a forex trend. This tool will help you as a forex trader to monitor the rate of change of the market. It gives a clearer view of the market’s bias, whether it is to the upside, downside, or a different bias.
By using the Trend Strength Indicator, there is no need to bother with the volatility of the market. It automatically analyzes and displays the speed at which the market is going through. This indicator will help you decide when you should open or hold a position, or even exit depending on the market. This indicator is used to indicate the direction of the trend and its strength.
How do I trade with the Trend Strength indicator on MT4?
This indicator is trend following. It is fairly simple to set up and use. It shows the potential of the trend as a percentage and its range is from 10% to 100%. It is made up of red and green arrows (both 10% by default) to mark the beginning of an upcoming trend. As the trend advances, the indicator draws new arrows by percentage.
The green arrow marks it as an uptrend, also known as a buy signal or a long line. Conversely, a red arrow marks a downtrend, i.e. the market is selling , or the market is selling, or a short signal.
The chart clearly shows how the market is in a strong uptrend. This means that there is a lot of demand in the market and that the bears are on the move. Sufficient to say that this indicator makes it practical to monitor trends, because it does all the technical research on the background and shows the results in percentages.
When trading in the financial instruments market, this indicator can be used to help you integrate any strategy you employ. It provides you with the confidence to keep trading simply by checking the percentage changes in the graph shown by this indicator. It can also be used to detect the range of the market. This shows that this indicator is beneficial for all types of traders, whether they are novices or experienced in intraday and swing market trading.
If your goal is to easily monitor how fast a trend is developing, MT4’s Trend Strength indicator should be one of the indicators in your chart. It allows you to know the potential strength of the trend in an instant.