Trend Line Indicator Introduction

All traders should know the trend before making their decision before placing the buy or sell orders. You really do not want to trade against the trend, never do that. Furthermore, your objective as a good trader is to trade with floating profit and to avoid drawdown as much as you can.

The first step always starts with #supply-and-demand, rising and falling #channels, #trend-line, #engulfing etc.

All the above contribute to what is called “Price Action” and that is the best and most reliable way in trading and catching the trend and making profits, without stress.

You can either scalp or trade using EA, whatever the tool is, that’s how all traders should consider. However, it can be tricky for your eyes to catch the trend as there are a number of candlesticks and in different time frames. Now, this is made easy using the #trend-line-indicator.

The Investment Castle Trend Line Indicator will automatically draw the trend lines on the MT5 or MT4 for you. And, you can trade on a chart using a time frame that is different from the time frame of the trend line itself.

This is a straight example I picked up randomly from Market Watch today and as we can see a straight application to the Price Action and basic Forex trading rules.

I loaded the following indicators on this chart:

This indicator will show some guidance messages such as “Buy only”, “Sell only” “Possible breakout”. These messages are for guidance only and you must exercise how to use this indicator.

Settings:

  • Auto update channels: if set to true, the indicator will frequently update the trend lines and you will not see the bottom left button on the chart. I don’t prefer this method as I will not be able to see the price in action with respect to the trend lines.

  • Indicator period: is an input for the calculations of the trend lines. The lower the value, the more frequent the trend line gets shifted. We should balance this out with the Min. Candles to draw lines input.

  • Multi time frame settings: you can choose 1 time frame or up to 4 time frames on the same chart. If you will use 1 time frame, ensure that all 4 time frames are set to that same time frame.

Below, I show the best settings I use with H1 time frame. I found these settings as the logical reprsentation of the trend lines for different pairs.

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