Current Trend Strength Indicator
The Current Trend Strength Indicator is one of a set of indicators designed to help MetaTrader 4 users identify the direction of the market they trade on any timeframe and take advantage of that direction. The indicator analyzes price over time to determine which of three trend phases the market is in — bullish, bearish, or neutral. It is: For more, read about Auto Trendline and Channel Indicator.
- A highly effective, free indicator
- Gives a percentage value for the current trend strength
- Shows buy or sell signals as a triangle on the chart
- Displays the current date and time on the chart
- Useful for all currency pairs and timeframes
- Compatibility: MetaTrader 4
In addition to identifying the trend phase within the trend-strength calculation, the Current Trend Strength Indicator goes a step further in its trend analysis: it records the actual current trend, whether that is a strong downtrend or a strong uptrend.
The Current Trend Strength Indicator also lets you spot a trend reversal — the point where a major shift happens and the market turns from an uptrend into a downtrend, or the reverse.
This gives you a chance to catch markets as their trend changes and take advantage of that shift early. To help traders get the most out of a trend, a new trailing stop works alongside the Current Trend Strength Indicator to track stops through the market’s measured phases.
For traders who prefer a traditional stop that follows price rather than an instant one, the indicator’s free trailing-stop feature is available as well.
The Current Trend Strength Indicator can also alert you when markets pull back, flagging potential swing-trading opportunities. Swing traders can set exactly how large or small a pullback should be and how long it should last.
On the daily forex chart, the Current Trend Strength Indicator includes an option to color each bar or candle so the trend is easy to spot at a glance, plus an option to display the actual trend-strength value on each bar along with color coding.
The indicator also has multiple settings that let you customize it, including which prices are used to calculate trend strength and the related trailing stops, the indicator’s sensitivity, and the values needed to trigger a bullish, bearish, or neutral reading.
The Current Trend Strength Indicator is used to identify pullbacks that occur during a strong trending market and is especially useful for swing traders. Users can set the minimum uptrend or downtrend required, along with the minimum and maximum requirements for each pullback and the number of candles the pullback should span — the indicator then alerts you each time a price pullback occurs.
FAQ
What is momentum in trading?
It’s an assessment of the market’s current trend strength and how fast prices are changing. This concept is based on the idea that a strong market trend will continue and get stronger as momentum increases. Conversely, when momentum decreases, the current trend loses strength and may reverse.
How does the MACD indicator work?
It’s a technical indicator used to identify points where a market trend is changing. It relies on buy and sell signals generated when a short-period moving-average line (fast MACD) crosses a long-period moving-average line (slow MACD). These crossover signals are used to anticipate trend-change points in the market.
What is the best indicator?
No single indicator is best in every situation. Traders should choose the indicators that fit their strategy and trading style, and a combination of indicators can be used for more complete technical analysis.
What is the ADX indicator?
It’s a technical indicator used to measure the current strength of a market trend. It relies on the true directional moving average (True Range), another indicator used to calculate price change. ADX uses a value between 0 and 100 to gauge trend strength, where a reading above 25 signals a strong trend and a reading below 25 signals a weak one.
Disclaimer
This article is for educational purposes only and is not investment or trading advice. Trading forex and CFDs on leverage carries a high level of risk and may not be suitable for everyone; indicator signals can fail and past performance does not guarantee future results. Some links on this page are affiliate links, and we may earn a commission if you open an account through them, at no extra cost to you.
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