Purpose:
To display a color indication of the Current Trend strength for a chart and to optionally generate alerts when the trend changes to an Up or Down trend. The trend strength levels depicted include FLAT, UP, STRONG-UP, DOWN and STRONG-DOWN. Users may choose to enable alerting based on changes in trend direction. Alerting includes traditional popup alerts on the users Metatrader platform as well as Notifications sent to the users’ smart phone or tablet.
The trend strength indicator considers the following components to determine trend direction and strength:
- Slow Moving Average
- Fast Moving Average
- Current price
- Average Direction Index
Inputs:
- SlowMA_Period – Slow Moving Average period. The number of price bars used to calculate the Slow Moving Average
- FastMA_Period – Fast Moving Average period. The number of price bars used to calculate the Fast Moving Average
- ADX_Period – Average Directional Index period. The number of price bars used to calculate the Avg Directional Index
- UseAlerts – if true then Metatrader platform alerts and Notifications will be generated whenever the Trend direction changes from Flat to Up, Flat to Down, Up to Down, or Down to Up
User Notes:
Many traders find it prudent to consider the overall trend direction before placing a trade. This is especially true for the Foreign Exchange markets where trends tend to stay in place for extended periods
The TrendStrength indicator depicts 5 Trend Strength levels:
FLAT, UP, STRONG-UP, DOWN, STRONG-DOWN
The TrendStrength indicator uses the Closing Prices, Slow and Fast Moving Averages, and the ADX Indicator to determine this.
Here are the rules used:
UP:
- the value of the Slow Moving Avg (MA) on the last closed bar is Greater than its value on the bar preceding the last closed bar
- the Closing price of the last closed bar is Greater than the value of the Slow MA of the last closed bar.
STRONG-UP – the conditions for an UP trend exist. In addition:
- the value of the ADX indicator on the last closed bar is Greater than 25
- the value of the Fast Moving Avg (MA) on the last closed bar is Greater than it’s value on the bar preceding the last closed bar
- the Closing price of the last closed bar is Greater than the value of the Fast MA of the last closed bar.
DOWN:
- the value of the Slow Moving Avg (MA) on the last closed bar is Less than its value on the bar preceding the last closed bar
- the Closing price of the last closed bar is Less than the value of the Slow MA of the last closed bar.
STRONG-DOWN – the conditions for a DOWN trend exist. In addition:
- the value of the ADX indicator on the last closed bar is Greater than 25
- the value of the Fast Moving Avg (MA) on the last closed bar is Less than it’s value on the bar preceding the last closed bar
- the Closing price of the last closed bar is Less than the value of the Fast MA of the last closed bar.
FLAT:
- If none of the above apply, the Trend direction and strength is considered to be Flat.
Configuration of the Metatrader platform (see Tools > Options > Notifications tab on platform), and installation of the Metatrader app on a users smartphone or tablet will allow these notifications to be received on same device.
- *Please note – in the pictures shown, the Moving Averages and ADX indicators shown are produced from the indicators that come with the Metatrader platform.
System Requirements
To run Metatrader 4 you should be using Windows 2000 or later, with a 2.0 GHz or faster CPU, and at least 512 MB RAM (although 1 GB is recommended). You should have a screen resolution of 1024 x 768 or higher, and an internet connection speed of 56 kbps or faster.