Trend Sentry Indicator

The Trend Sentry Indicator is a trend-following indicator that may be used by both scalpers and swing traders. The indicator is directly displayed on the main trading chart. The input tab allows you to change the default parameters directly. Feel free to play around with the settings and parameters to suit your needs.

What is the Trend Sentry Indicator?

The Trade Sentry Indicator itself is quite simple, consisting of simply two lines, one blue and one red. When the Trend Sentry displays the blue signal line, it indicates that the current trend-momentum is bullish. Similarly, when the Trend Sentry displays the red signal line, it indicates that the current trend-momentum is bearish. The indicator is appropriate for all timeframes and currency pairs.

Setting up the Trend Sentry Indicator
Setting up the Trend Sentry Indicator

Trend Sentry Strategy

The Trend Sentry Indicator’s signals are very simple and may not cause you any problems if used properly. You could place a long trade when the Trend Sentry indicator displays a blue line and the word “LONG” in the top right corner. You may set your stop loss a few pips below the previous swing low. On the other hand, you could place a short trade when the Trend Sentry indicator shows a red line and the word “SHORT” appears in the upper right corner. You may set your stop loss a few pips higher than the previous swing high. You may want to exit trade or take profit when the opposite signal happens. It’s appropriate to remember effective money management while trading. You ought to master discipline, emotions, and psychology. It is critical to understand not just when to trade, but also when not to trade. You may want to avoid trading under unfavorable market conditions such as low volume/volatility, after key sessions, exotic currency pairs, wider spreads, and so on.

Buy Signal

The following could be your checklist for a buy trade:

  • When price is trading above the blue indicator line.
  • When the indicator displays the word “LONG”.

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 displays the word “SHORT”.
  • For good risk management, I would only consider trades with a risk to reward ratio of at least 1:2.
Trend Sentry Indicator Buy Setup
Trend Sentry Indicator Buy Setup

Sell Signal

The following could be your checklist for a sell trade:

  • When price is trading below the red indicator line.
  • When the indicator displays the word “SHORT”.

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 displays the word “LONG”.
  • For good risk management, I would only consider trades with a risk to reward ratio of at least 1:2.
Trend Sentry Indicator Sell Setup
Trend Sentry Indicator Sell Setup

Trend Sentry Pros & Cons

Pros

  • The Trend Sentry Indicator may make it easy for its users to identify the prevailing trend direction.
  • The indicator, in addition to the colored lines, also signals to the trader in written word what trade direction to follow.

Cons

  • The Trend Sentry Indicator may sometimes mistake a trend correction for a trend reversal, and vice versa.
  • This indicator may not meet the trader’s expectations in a narrow-ranging market on smaller timeframes.

Conclusion

The Trend Sentry indicator is well worth adding to your trading arsenal but keep your expectations in check. It, like any other technical analysis tool, is not capable of generating 100% correct indications. As a result, this forex indicator occasionally generates erroneous signals. Its performance will be highly variable depending on market conditions. You are free to create your own trading method based on it.

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