Today Trend Indicator

Jason Rivera’s Today Trend Indicator is a technical indicator designed to assist day traders in determining the trend direction for the day based on an underlying Daily Pivot Point. This should offer traders an idea of where the price may move throughout the day.

What is the Today Trend Indicator?

The Today Trend Indicator is a unique technical indicator that predicts the day’s trend. It does so by drawing a blue arrow pointing up to suggest a likely bullish trend for the day and a red arrow pointing down to indicate a likely negative trend. It also draws a yellow green line to show where the trade could be opened and a red line to show where the stop loss could be put.

Setting up the Today Trend Indicator
Setting up the Today Trend Indicator

Today Trend Strategy

To determine the likely trend direction, the Today Trend Indicator employs an algorithm that includes the Daily Pivot Points as well as the related first and second support and resistance levels. It does so by comparing the open price to the high, low, support and resistance levels in order to identify likely trend orientations.

This indicator could be used in conjunction with the trend direction. As a result, traders can filter for trend direction by adding a moving average line, such as a 50-bar Simple Moving Average (SMA). Traders could then enter a trade in the direction of the prospective trend, assuming price will breakout in the direction of the yellow green line and the trend.

Buy Signal

The following could be your checklist for a buy trade:

  • When the asset being traded is up trending.
  • When the indicator plots a blue arrow.

Once these events occur:

  • You could open a buy position after you confirm your entry with bullish candlestick patterns.
  • You could set your stop loss just below the nearest swing low.
  • You could set your take profit at the nearest resistance zone, or you could exit trade when the indicator plots a red arrow.
  • For good risk management, I would only consider trades with a risk to reward ratio of at least 1:2.
Today Trend Indicator Buy Setup
Today Trend Indicator Buy Setup

Sell Signal

The following could be your checklist for a sell trade:

  • When the asset being traded is down trending.
  • When the indicator plots a red arrow.

Once these events occur:

  • You could open a sell position after you confirm your entry with bearish candlestick patterns.
  • You could set your stop loss just above the nearest swing high.
  • You could set your take profit at the nearest support zone, or you could exit trade when the indicator plots a blue arrow.
  • For good risk management, I would only consider trades with a risk to reward ratio of at least 1:2.
Today Trend Indicator Sell Setup
Today Trend Indicator Sell Setup

Today Trend Pros & Cons

Pros

  • The Today Trend Indicator assists traders in predicting the trend direction for the day.
  • This indicator may be used to predict possible trend reversal zones so that the trader could act accordingly.

Cons

  • The Today Trend Indicator may not be very suitable for scalpers who trade on the smaller timeframes.
  • This indicator may require some level of technical analysis knowledge to benefit optimally.

Conclusion

When used in conjunction with the trend direction, the Today Trend Indicator can be a useful signal indicator. It does, however, produce false signals when the trade direction it indicates contradicts a clearly trending market. This is why a prominent moving average line, such as the 50 SMA line, can be used to filter for trend direction. This may improve the effectiveness of the Today Trend Indicator.

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