The Zwinner Trend is an MT4 indicator that helps determine potential trend-reversal signals for forex and stock traders.
Using a trend oscillator alongside trend-following strategies can boost your trading performance. Although, a tend indicator may not generate direct buy-sell signals. Traders prefer automatic trend signal indicators to verify the solidity of the potential trade setups.
The Zwinner Trend Indicator applies a simple technique to demonstrate changes in market trends. Its signal bars switch colors between yellow and red to show whether it is a bullish or a bearish trend. The moment it changes the color indicates a potential trend reversal period.
This guide explains how the Zwinner Trend indicator helps you trade within correct trend directions.
What is the Zwinner Trend Indicator?
The Zwinner Trend indicator closely monitors price-action changes and shows the current trend condition. It shows colored signal bars to indicate market bias. The bars turn into lime color during a bullish trend. Conversely, it becomes red to signal a downtrend.
While anticipating buy/sell signals, you must match the Zwinner trend signal with precise chart patterns. For example, the indicator showing lime bars during a bullish breakout can be an opportunity to go long. In the same way, you consider entering short following a bearish breakout with red Zwinner signal bars.
Zwinner Trend indicator can also assist you in determining pullback entry signals. In such a case, you may need to add a moving average, trendline, or Fibonacci level to assess the potential price retracement zones.
For example, the price rejecting a trendline resistance while the Zwinner Trend indicator signals a bearish market trend would mean the market is likely to rejoin the overall downtrend condition. So, you may consider a sell order on a bearish candlestick pattern formed right below the trendline.
The Zwinner indicator works on both short and long-timeframes. Although, its signals are more consistent when applied on 4-hourly to daily charts. As a result, it may assist you better in intraday trading rather than scalping.
Zwinner Trend Trading Strategy
Buy Signal
- The Zwinner indicator bars appear in lime color.
- The price breaks resistance or rejects support.
- Hold long entries until the bars become red.
Sell Signal
- The Zwinner indicator bars turn red.
- The price moves below support or rejects resistance.
- Hold short entries until the bars switch to lime color.
Zwinner Trend Indicator Pros/Cons
Pros
- Zwinner trend signals are easy-to-read and simple to follow.
- Show current market bias and simultaneously signals trend changes.
- Helps assess price breakouts and determine possible price pullback zones.
- Can be applied alongside any trend-following trading strategy.
Cons
- Doesn’t generate flat-trend signals.
Conclusion
The Zwinner Trend indicator is undoubtedly one of the simplest trend-following indicators ever developed for MT4 platforms. From experts to beginners, anyone can use it to determine the current trend condition. However, its signal may only work during a strong bullish, or bearish market trend condition. Therefore, consider adding a momentum indicator alongside the Zwinner indicator for a better confirmation of the market trend. This strategy will also help you avoid false trend signals in sideways markets.
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