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The indicator is Trend Filter Forex. Description and methods of use in trading.
Very often in trading on financial markets has to wonder what the state of the market at the moment? Some trading systems are designed to work in trending markets, others are made for flat.

There are various ways to divide the market in the States, but one of the most effective filters is a Trend Filter. Below You can download Trend Filter absolutely free and without registration.

Trend Filter is installed in the standard way in the MetaTrader 4 terminal. The program changes their values when switching timeframe, in this case is understandable. The indicator is in a separate window under the main field of the price chart.
 
Trend Filter in MetaTrader 4
In the window appears the only line that can take one of three colors:

• red is a downtrend.
• yellow - the market is in a state of uncertainty;
• green - uptrend.

The use of the indicator Trend Filter

The algorithm estimates the market condition and provides information in the form of a line that changes color. In addition, the beginning of change of trend in the market can be detected due to the slope of the line indicator. If there is a slope down, then the trend changed to a decrease in quotations, as if up, then we can talk about the beginning of an uptrend.
 
The indicator is Trend Filter Forex
The indicator settings:

• Nbars - indicator period;
• MA Period - moving average period for smoothing.
 
Custom indicator Trend Filter
Trend Filter can be applied at least in two ways:

• trading signals of the algorithm when the program window there is a red or green line;
• to filter the signals the system trading against the trend.

The first option is, in the author's opinion, is highly questionable, as being late will not only at closing but also when it is closed. The result often it turns out that floating profit which is accumulated until the position was open, almost completely disappears when the signal for the closing of the transaction.
 
Sample transaction Trend Filter
The second option is more efficient because it is off the signals of Your trading system against current market trends. It works in such a way that the trader uses to trade Forex your, say, short-term vehicle, but improves the results, reducing the number of losing trades that go most often because of the signals against the trend.

For example, if strategy trader gets a buy signal, Trend Filter shows a red line, it is best to refrain from operations:
 
That shows the Trend Filter
In addition, it would be better not to open the position even at a yellow signal indicator. All of these activities reduce the likelihood of loss.

Until the indicator line shows uncertainty in the market, it is better to sit on the fence" to wait until the situation becomes more certain and then make a deal. As You know, the second variant of the algorithm application requires "small" - a trading system. Here are a few options that can be quite good to combine with this indicator:

• Scalping on M1
• With the trend on pullbacks

Trend Filter Forex is a quality filter that helps you quickly understand the situation on the market. Of course, you can try to a standard visual analysis, but it is in terms of objectivity leaves much to be desired. The indicator constantly analyzes the market, all the while using the same algorithm that allows the trader to obtain objective data.

Category: Binary options | Added by: (07.11.2017)
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