Trend Indicator for Metatrader 4
AT Dynamic trend is a low-lagging, smooth trend indicator for MT4 (Metatrader 4) and Ninjatrader 7, that highlight the trend’s direction. The advantages over other moving averages (simple, weighted, exponential, etc) is that Dynamic Trend signals a reversion of the trend quicker, almost eliminating lag. The smoothness also makes it less erratic than other moving averages.
Features
- Draws trends in real time directly on the chart
- Identifies trend reversions faster than other moving averages
- Possibility to define alerts when the trend shifts up or down
- Different colors to better visualize trend reversions
- Customizable period to catch short-term, mid-term or long-term trends
How to use AT Dynamic Trend?
Traders should use a longer period dynamic trend (200 bars) to identify the prevailing trend. If the prevailing trend is rising, it is better to enter long positions. When the prevailing trend is falling, it is better to enter short positions.
After defining the prevailing trend, a shorter period trend may be used to signal buy or sell opportunities. The recommended periods used to identify the short-term trend are 15 and 21 bars. Bullish/bearish signals occurs when the short-term trend turns up/down in the direction of the longer term. An upside movement of the short-term trend when the long-term trend is rising marks a good buying opportunity. On the other hand, a downside movement of the short-term trend when the prevailing trend is falling marks a sell opportunity.
Traders may use this trend following indicator to look for directional signals by looking at the short term trend and compare it to the prevailing trend’s direction. One key difference of this trend indicator is that it should not be used to signal intersections.
Other moving averages, like the EMA or SMA, can be used to understand the short-term momentum by looking at the intersection between trends from different timeframes. However, the dynamic trend is used mainly to see the direction of the short-term trend and compare it to the long-term one instead of looking for intersections between them.
Is it the best trend indicator for Metatrader (MT4)?
It is difficult to pinpoint the BEST trend indicator – there are many different trend indicators, ranging from trend lines to candle trend indicators and many other types of indicators with different calculation algorithms.
However, what we can definitely say is that AT Dynamic Trend is certainly a very robust trend indicator that can detect emerging trends quickly, and so it is able to adjust to different market conditions. This allows you to get in and out of the market as the trend changes, which is especially important in the dynamic Forex markets.
How do you know when the trend is ending?
With the Dynamic Trend indicator, you will know a trend is ending when the indicator switches to a “transition” trend (yellow color by default). Many times, this will be the right occasion to exit your trade, or to be more alert for other exit signals.
How can trend indicators improve your trading strategy?
A trend indicator allows you to enter the beginning stage of a promising movement, as well as to close your trade when the trend is changing direction. It does so by filtering the prices, which are often erratic, to make the trend more apparent.
