Introduction to the Trend Signal Version 2 Indicator
Trend reversals are excellent trade entry points as it allows traders to open trades that may produce huge profits. However, it can also be quite difficult to predict. The Trend Signal Version 2 Indicator was developed for the purpose of helping traders identify potential trend reversals using an indicator which pinpoints price swings.
What is the Trend Signal Version 2 Indicator?
The Trend Signal Version 2 Indicator is a trend following technical indicator which can be used as a trend reversal signal indicator.
This indicator identifies potential trend reversal points and price swings. It then plots an arrow pointing the direction of the potential trend reversal. It plots a blue arrow pointing up to indicate a potential bullish reversal and a magenta arrow pointing down to indicate a potential bearish reversal. The indicator also connects the arrows with a line which allows users to identify the price swings.
How the Trend Signal Version 2 Indicator Works?
The Trend Signal Version 2 Indicator uses a complex algorithm which allows it to detect potential trend reversals. Based on its code, the indicator compares price movements with the average range of the candles. The indicator then plots an arrow whenever it detects a trend reversal pointing the direction of the new trend. It then connects the point where the arrow is placed to the point where the previous arrow is. This forms a zigzag like pattern which is quite different from the classic Zigzag Indicator.
How to use the Trend Signal Version 2 Indicator for MT4
The Trend Signal Version 2 Indicator has a few modifiable variables within its indicator settings.
“RISK” modifies the threshold in which the indicator would detect the price swings. The lower the input value, the more sensitive the indicator is. Raising the input value would remove some of the price points identified if the RISK value were lower.
“SSP” also modifies the points which the indicator would detect as a valid trend reversal. The higher the input value placed on the SSP, the more lag the indicator has. It also has the tendency to omit some of the price swings if the input value on the SSP were raised.
“Enablemail” toggles the email push notification of probable trend reversal signals on or off.
Setup Bazirganî bikirin
Kengê têkevin?
Open a buy order if the indicator would plot a blue arrow pointing up in confluence with other bullish technical indications.
Kengî Derkeve?
Gava ku nîşanker tîrek ku ber bi jêr ve nîşan dide, bazirganiyê bigrin.
Setup Bazirganî bifroşin
Kengê têkevin?
Open a sell order if the indicator would plot a magenta arrow pointing down in confluence with other bearish technical indications.
Kengî Derkeve?
Gava ku nîşanker tîrek ku ber bi jor ve nîşan dide, bazirganiyê bigrin.
Xelasî
The Trend Signal Version 2 Indicator can be a good trend reversal entry signal confirmation. However, it should not be used as a standalone entry signal as it also has the tendency to produce false signals or trades with short price swings. It is best to trade this indicator in confluence with the long-term trend direction or with a reversal on a support or resistance area.
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