Slope direction line forex indicator mt4 is a technical forex indicator to identify the trend reversal and chart trend direction. The slope direction line indicator is based on the concept that moving the average(MA) line changes its slope according to the chart price action.
The Slope direction line forex indicator
The slope direction line indicator displays a modified moving average(MA) curve on the chart. The chart slope line curve is shown in the form of a colored curve. The angle is smooth and responsive to the chart price action. It changes its color according to the chart trend in the following manner
- The blue curve shows a bullish trend
- The red curve shows a bearish trend
Also, learn about the Trendline Trading Forex Strategy
How to use the Slope Direction Line Forex Indicator?
You can modify the indicator parameters of the slope direction line forex indicator to pinch its sensitivity. There are the following methods to twerk its effectiveness.
- “Period” refers to the number of periods on which the modified moving average(MA) line is based.
- “MA method” refers to the modified moving average(MA) line used.
- “Applied price” refers to the source of the price data on each bar.
Slope Direction Line indicator can also be employed as a trend filter, where forex traders only trade in the direction shown through forex Slope Direction Line.
It could also be utilized to create a chart trend reversal signal, where traders use the changing colors of the lines to determine the basis for opening trading and shutting trades. It is recommended to utilize this signal to reverse the trend when combined with other indications of trend reversal or patterns
Trading with slope direction line
The slope direction forex indicator is perfect for determining suitable moments for opening and good profitable closing positions.
Start to buy trade
Open a buy entry order as soon as the price reverse in the chart support zone and the Slope Direction Line indicator changes to blue. Set the stop loss below the chart support level.
The exit of buy trade
When Slope Direction Line indicator changes to red, Close the trade.
Start of sell trade
Open a sell entry order as soon as the price reverse in a chart resistance zone and the Slope direction line indicatorchanges to red. Set the stop loss(SL) above the resistance level.
The exit of exit trade
Close the open trade when the Slope Direction Line indicator changes to blue.
The slope direction line indicator is an element of trading techniques. It secures your trade by revealing the common trend reversals. It is helpful for all forex traders and works in multiple time frames.