The main aim of technical forex traders is to identify the direction of the trend. Successful Forex trading mostly depends on the ability to identify and follow trends. Most technical indicators identify trends but need to recognize the trend’s real strength. The power Trend indicator for MT4 determines the presence of a trend, direction, and strength in visual colors. This critical aspect of the Power Trend Indicator for Metatrader 4 empowers the trader with the trend’s essential insight.
The Power Trend indicator displays the trend strength visually in different colors. These colors help the forex trader identify weak trends, the possible emergence of a new trend, and establish whether the trend strength is moderate or strongly established. The information displayed by the Power Trend indicator is vital for forex traders to identify the best entry and exit points. Many traders exit a profitable trade very early in the trend. However, the Power Trend indicator helps traders stay within the trend and maximize profits. The visually colored histogram helps forex traders plan trading strategies at different trends.
Power Trend Indicator For MT4 Trading Method
The above EURUSD H1 chart shows the Power Trend indicator histogram with different colors. The trend is UP if the histogram stays above the zero line. On the other hand, the histogram below the zero line indicates a DOWN trend. The histogram relative to the zero line is one of this indicator’s multiple strategies and possibilities.
The color of the histogram provides visual information about the trend strength in four different colors. If the histogram is in BLACK, it shows a weak trend or absence of a trend denoting the period to avoid new trades. The RED color in the histogram shows that a new trend is starting to emerge. Additionally, if the trend is moderate, the histogram changes its color to BLUE. Finally, the GREEN color histogram indicates the presence of a strong trend.
The forex trader exits the trade once the histogram color changes to BLACK, indicating a weak trend or the histogram changes to a RED color, indicating a new trend.
The histogram colors make it visually easy for new traders to identify the trend and maturity level. This enables new forex traders to ride the trend wave till its end. Experienced forex traders identify the various trend strength levels and plan advanced trade strategies.
Traders plan to add more positions to existing positions once the trend changes from moderate to strong as the color of the histogram changes from BLUE to GREEN. Additionally, the Power Trend indicator is free to download.
The Power Trend Indicator for Metatrader can indicate trends and visually display the various trend stages to the forex trader. As a result, with its ability to display different trend strengths, this free-to-download amazing indicator will form an essential tool in the trend trader’s arsenal.