Trend Indicator for Metatrader 4/NinjaTrader 7
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.
