Trend Friend Indicator

The Trend Friend Indicator is a custom signal designed to help traders recognize and track the trend in their trading. It’s composed of two exponential moving averages (EMA) and the MACD oscillator and using the rules of the Trend Friend Indicator, traders may be able to advance their trading success by gaining a better grasp of the current market trend. This article will cover how the Trend Friend Indicator works and how to incorporate it into a trading strategy. Before utilizing this trading tool, however, traders should practice caution and use proper risk management strategies.

What is the Trend Friend Indicator?

The “Trend Friend Indicator” employs two EMAs and the MACD oscillator to help traders spot and keep track of market trends. It signals when to buy or sell on various timeframes from the 1 Minute to the 4 Hours. The Trend Friend Indicator is structured as a table of columns and rows. The rows represent the two EMAs and the MACD, while the columns present the different timeframes. The first EMA is the faster one with a period of 12, and the second EMA has a period of 24 and is slower. The Trend Friend Indicator offers traders a straightforward way to detect and follow market trends, using a variety of signals from its MACD oscillator and two EMA’s. This structure can provide clear indications of whether the market is trending upwards or downwards.

Trend Friend Indicator Strategy

The Trend Friend Indicator has been crafted to assist traders in recognizing and following the trend in their trading. When day trading, it is best to use short-term timeframes like M1, M5, and M15. Though the indicator also includes signals for H1 and H4, thesecan also be even more effective for day trading.

Once you’ve chosen your timeframe, ensure all of Trend Friend’s significant indicators are glowing green. If you’re trading on the M5 chart, begin with the second column and then proceed to the M15 and M30. When all signals from these three columns are green, you can open a long position.

To ensure an accurate entry signal, observe the M15 chart’s third column and the proceeding two (M30, H1) for all signals to be green, and then open a long position. It is suggested to also observe the previous column for greater precision.

Adhere to the same guidelines when making a short entry, however, the signals should be RED this time (SELL). When the prior columns turn GREEN, take the profit manually and set the stop loss at 15-20 pips above the present price. Bear in mind that the bigger timeframes indicate the more general direction whereas the smaller timeframes shift their signals more regularly due to price volatility.

Buy Signal

Trend Friend Indicator Buy Signal
Trend Friend Indicator Buy Signal
  • Select a timeframe, either M1, M5, or M15 and check that the critical Trend Friend signals are all in the green.
  • Verify that the signals from the second column on the M5 chart or the third column on the M15 chart, as well as the next two columns (M15, M30 for M5 and M30, H1 for M15) are green.
  • Once the aforementioned conditions are met, traders may go long.
  • Place a stop-loss order at the low of the most recent swing or elsewhere consistent with your money management plan.
  • When the previous columns turn red or when the price hits a significant level of resistance, traders may close their trades.

Sell Signal

Trend Friend Indicator Sell Signal
Trend Friend Indicator Sell Signal
  • Select a timeframe, either M1, M5, or M15 and check that the critical Trend Friend signals are all in the red.
  • Verify that the signals from the second column on the M5 chart or the third column on the M15 chart, as well as the next two columns (M15, M30 for M5 and M30, H1 for M15) are red.
  • Once the above requirements are met, traders may open a short position.
  • Set your stop loss at the recent swing high that has developed.
  • Place a stop-loss order at the high of the most recent peak or elsewhere consistent with your money management plan.
  • When the previous columns turn green or when the price hits a significant level of support, traders may close their trades.

Trend Friend Indicator Pros & Cons

Pros

  • All levels of traders can benefit from using the Trend Friend Indicator because of how intuitive and simple it is to operate.
  • The MACD oscillator and moving averages are a time-tested method for tracking market momentum and spotting emerging trends.
  • The indicator’s adaptability lies in its ability to be used across multiple timeframes and currency pairs.

Cons

  • False signals can be generated by the Trend Friend Indicator, especially in very volatile markets.
  • The use of short-term timeframes for day trading may not be appropriate for all traders because it demands regular market monitoring and can be stressful.

ConclTrend Friend Indicatorusion

To sum up, the Trend Friend Indicator enables traders to detect and stay with the trend in their trading. The two exponential moving averages and MACD oscillator generate buy and sell signals for short-term timeframes like M1, M5, and M15. This tool is ideal for day traders, though one must still exercise caution and apply proper risk management.

Free Forex Robot