Introduction to the Higher Timeframe Trend Indicator
Trade signals are often categorized into two types, trend continuations and reversals. However, there are trade signals and strategies that trade on the confluence of both. This indicator is one of those indicators that provide trade signals based on the confluence of a long-term trend and a mean reversal.
What is the Higher Timeframe Trend Indicator?
The Higher Timeframe Trend Indicator is a combination of a trend following indicator and a mean reversal signal indicator.
This indicator identifies trend direction based on the higher timeframes. It plots a green line above price to indicate a bullish trend, a red line below price to indicate a bearish trend, and a gray line to indicate a non-trending market.
It also identifies overbought and oversold price levels which could lead to a mean reversal which has a trade direction that coincides with the higher timeframe trend. It indicates these price points by plotting a blue dot.
How the Higher Timeframe Trend Indicator Works?
This indicator identifies trend direction using moving averages. It uses a series of underlying moving averages which are based on the selected higher timeframe. It detects a bullish trend whenever the faster moving average lines are above the slower moving average lines, and a bearish trend whenever the faster moving average lines are below the slower moving average lines. If the moving averages do not stack up correctly, it would detect a non-trending market.
It also uses an underlying RSI to detect overbought and oversold price levels. It then plots a dot whenever it detects an overbought or oversold market.
How to use the Higher Timeframe Trend Indicator for MT4
This indicator allows users to select the timeframe of the trend using the “Upper_Timeframe” variable. Users simply have to type in the timeframe based on minutes.
It also allows users to modify the underlying moving averages using the “Upper_Timeframe_MA_1 … _4” variables.
It also has a section which allows users to modify its underlying RSI.
This indicator can be used as a mean reversal signal indicator traded in confluence with the higher timeframe trend. Traders can take the dots as a mean reversal entry signal. However, these signals should be in confluence with a reversal candlestick pattern.
Buy Trade Setup
When to Enter?
The indicator should plot a green line above price. Open a buy order on the confluence of a bullish candlestick pattern and a blue dot. Set the stop loss on the support below the entry candle.
When to Exit?
Close the trade as soon as price action shows signs of a bearish reversal.
Sell Trade Setup
When to Enter?
The indicator should plot a red line below price. Open a sell order on the confluence of a bearish candlestick pattern and a blue dot. Set the stop loss on the resistance above the entry candle.
When to Exit?
Close the trade as soon as price action shows signs of a bullish reversal.
Conclusion
This indicator is an excellent signal indicator. It provides a mean reversal signal which is in confluence with the long-term trend. Traders can use this indicator with a relatively high win rate if used correctly.
MT4 Indicators – Download Instructions
Higher Timeframe Trend Indicator for MT4 is a Metatrader 4 (MT4) indicator and the essence of this technical indicator is to transform the accumulated history data.
Higher Timeframe Trend Indicator for MT4 provides for an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.
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How to install Higher Timeframe Trend Indicator for MT4.mq4?
- Download Higher Timeframe Trend Indicator for MT4.mq4
- Copy Higher Timeframe Trend Indicator for MT4.mq4 to your Metatrader Directory / experts / indicators /
- Start or restart your Metatrader 4 Client
- Select Chart and Timeframe where you want to test your MT4 indicators
- Search “Custom Indicators” in your Navigator mostly left in your Metatrader 4 Client
- Right click on Higher Timeframe Trend Indicator for MT4.mq4
- Attach to a chart
- Modify settings or press ok
- Indicator Higher Timeframe Trend Indicator for MT4.mq4 is available on your Chart
How to remove Higher Timeframe Trend Indicator for MT4.mq4 from your Metatrader Chart?
- Select the Chart where is the Indicator running in your Metatrader 4 Client
- Right click into the Chart
- “Indicators list”
- Select the Indicator and delete
Higher Timeframe Trend Indicator for MT4 (Free Download)
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