Forex Trend Code MT4 Indicator

Forex Trend Code MT4 Indicator:

About the Forex Trend Code MT4 Indicator

Trend Code is a very simple and yet effective trend indicator to capture trend movement, detect the trend reversal, calculate entry price as well as proper stop loss.

Trend Code indicator is made up of a series of block, while bull trend block in bull colour and bear block in bear trend colour. For bull trend block, the TrendOpen is the lower edge, TrendClose is the upper edge, for bear trend block, the other way round.

Parameters

TrendOpenAdjustment  = 0.5;

TrendCloseAdjustment = 0.5;

These two parameters can be used to fine tune the calculation of Trend Code block, therefore the shape of the blocks may change, the adjustment range is between 0.0 to 1.0, default value is 0.5;

Main features

1.       No delay and remain unchanged during the timeframe.

Indicator is calculated from the information give from last closed candle stick, therefore the latest block is shown at the opening time and remain unchanged until the next candle start.

2.       Capture trend movement

If the block are showing bull colour, then is in bull trend, else it is in a bear trend. The length of each block shows the strength of the trend. When trend is strong, block are big. However, when the blocks are covered by candle stick, that indicates the market trend is weak and in consolidate states. (See Chart)

3.       Detect trend reversal

Trend reversal usually happens when block is small and it was reversely engulf by a large candle stick. (See Chart)

4.       Calculate entry price for trading order

Perfect entry price is higher edge of bull block and lower edge of bear block (See Chart)

5.       Calculate stop loss for trading order

Stop loss price is at lower edge of bull block and higher edge of bear block. (See Chart)

Recommended trading strategy

·         Apply the indicator to D1 or H4 chart for any product.

·         Look at the past few block and the current trend block to determine the trend

·         When trend is confirmed, place pending order at the TrendClose price and place stop loss at TrendOpen price of the current block. If the order is triggered, you may move the stop loss to the TrendOpen price of the newest block.

·         When engulf occurred, you may choose instant order along the trend direction and same place stop loss at TrendOpen price of the current block.

Please give your valuable feed back for me to improve the indicator.

Test results:

Forex Trend Code MT4 Indicator

Copy and paste the file into the MQL4 Indicators folder of the Metatrader 4 trading platform.

You can access this folder from the top menu as follows:

File > Open Data Folder > MQL4 > Indicators (paste here)

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