Great Trend Trading System

The Great Trend Trading System is a trading strategy based on technical analysis. It uses a number of technical indicators to identify market trends. The Great Trend Trading System’s goal is to enter trades in the direction of the trend and hold them until the trend shows signs of reversal. The indicators used by the Great Trend Trading System may be different, but moving averages, trend lines, and momentum indicators are all common trend-following indicators. This article will give a brief overview of the Great Trend Trading System, including its main parts, pros, and cons. It will also show how traders could efficiently incorporate the technology into their own trading strategies.

What is the Great Trend Trading System?

The Great Trend Trading System is a trend-following trading system designed to follow the trend on larger time frames. This forex trading strategy is based on two trend indicators: the trend line and the trend direction. The point of using two trend indicators is to filter the signals they produce so that they are more accurate than if only one indicator was used. The Trend Direction Indicator is an arrow indicator that displays a red down arrow to indicate a sell signal and a blue up arrow to indicate a buy signal. The purpose of the arrows is to convey the asset’s trend to the trader. This indicator also has a dotted line, which is part of the average true range and tells traders when a trend move has reached its end. When the arrow of the trend direction indicator shows up, it is the job of the trend line indicator to give the entry signal. The trend line indicator has a moving average line that provides two colors based on the direction of the asset’s movement. A color change to red suggests that the trend should move downward, while a change to blue indicates that the trend should move upward.

Great Trend Trading System Strategy

The trend line and the trend direction work together to provide crossover signals that verify the market trend and the trade. When the trend line crosses above the trend direction, this is seen as a bullish crossover, signaling the bullish trend of the market along with additional confirmations to buy long. In contrast, when the trend line goes under the trend direction, it represents a bearish crossover trend signal and is seen as a positive signal for shorting. The system represents these crossover signals as up-and-down arrows to make selecting the relevant signals simpler. These two indicators also function as dynamic support and resistance levels. This feature enables traders to change the stop position for each market entry.

Buy Signal

Great Trend Trading System BUy SIgnal
Great Trend Trading System BUy SIgnal
  • Wait for the price to close above the trend line and trend direction levels.
  • Ensure that the trend line and trend direction create bullish crossover signals and that an upward arrow is drawn below the price bar.
  • When each of the aforementioned requirements is satisfied, you may enter a long position.
  • Set your stop-loss slightly below the entry candle or according to your own money management strategy.
  • Traders may close their positions when the Great Trend Trading System gives a reversal signal or when the price reaches a major support level.

Sell Signal

Great Trend Trading System Sell Signal
Great Trend Trading System Sell Signal
  • Wait for the price to close below the trend line and trend direction levels.
  • Ensure that the Trend Line and Trend Direction are producing bearish crossover signals, and paints a downward arrow above the price bar.
  • When each of the aforementioned requirements is satisfied, you may enter a short position.
  • Set your stop-loss slightly below the entry candle or according to your own money management strategy.
  • Traders may close their positions when the Great Trend Trading System provides a reversal signal or when the price reaches a significant level of resistance.

Great Trend Trading System Pros & Cons

Pros

  • It offers signals that are easily interpreted.
  • The approach is aimed at recognizing market trends, which may be a more productive method of trading than attempting to forecast market movements.
  • It is compatible with a wide range of instruments.

Cons

  • The system is designed to recognize and follow trends; thus, it may not perform well in volatile or range-bound markets.
  • By focusing on trend following, the system may miss out on short-term market movements that might be profitable.

Conclusion

In the end, the Great Trend Trading System is great for traders who want a clear and simple way to find trends and make trading signals. Still, like any other trading system, it has its limits and requires discipline and knowledge of the market to work well. Before using the system for their own trading goals, traders should think carefully about its pros and cons and talk to a financial expert.

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