Introduction to the Trend Arrows Indicator
Trading with the trend is often one of the most basic advice that a seasoned trader would give. Also, seasoned traders would often advice traders to prioritize the long-term trend as price typically follows the direction of the long-term trend.
The Trend Arrows Indicator is a tool which traders can use to identify trend direction geared towards the long-term trend.
What is the Trend Arrows Indicator?
The Trend Arrows Indicator is a trend following technical indicator which identifies indicates the direction of the long-term trend. It plots a series of dots which may shift around price action and change color depending on the direction of the long-term trend. It plots a dodger blue dot to indicate a bullish trend reversal and a dark orange dot to indicate a bearish trend reversal. It then continues to plot blue dots to indicate a bullish trend and red dots to indicate a bearish trend.
How the Trend Arrows Indicator Works?
This indicator uses a complex algorithm to calculate for the direction of the long-term trend. It then plots the dots based on the direction of the trend it identifies. These dots then shift whenever price closes on the opposite side of the dot as indicated by the prior trend direction.
How to use the Trend Arrows Indicator for MT5
This indicator has three variables which can be modified within its indicator settings. However, these setting options are not labeled in English.
The first variable modifies the distance between price action and the dots. This effectively adjusts the sensitivity of the Trend Arrows indicator when detecting trend direction and reversals. The higher the value of the input, the farther the dots are from price action.
This indicator can be a very reliable long-term trend direction filter. Traders can use this indicator to identify the direction of the long-term trend and trade exclusively in that direction based on the color of the dots.
It can also be used as a long-term trend reversal entry signal. Traders can open trades based on the appearance of the dodger blue and dark orange dots.
It can also be used as a dynamic support and resistance level. Traders can trade the price rejection candlestick patterns that develop as price pulls back towards the dots.
Buy Trade Setup
When to Enter?
The dots should be blue. Wait for price to pullback towards the blue dots. Open a buy order as soon as price action shows signs of price rejection on the level of the dots. Set the stop loss below the pattern.
When to Exit?
Close the trade as soon as price action shows signs of a bearish reversal.
Sell Trade Setup
When to Enter?
The dots should be red. Wait for price to pullback towards the red dots. Open a sell order as soon as price action shows signs of price rejection on the level of the dots. Set the stop loss above the pattern.
When to Exit?
Close the trade as soon as price action shows signs of a bullish reversal.
This indicator can be a very reliable long-term trend following indicator. Traders can easily spot the direction of the long-term trend when using this indicator and trade exclusively in that direction. Often, trading exclusively in the direction of the trend significantly improves a trader’s accuracy.
MT5 Indicators – Download Instructions
This is a Metatrader 5 (MT5) indicator and the essence of this technical indicator is to transform the accumulated history data.
This MT5 Indicator provides for an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.
Based on this information, traders can assume further price movement and adjust their strategy accordingly. Click here for MT5 Strategies
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How to install MT5 Indicator to your MetaTrader 5 Chart?
- Download mq5 file below
- Copy the mq5 file to your Metatrader 5 Directory / experts / indicators /
- Start or restart your Metatrader 5 Client
- Select Chart and Timeframe where you want to test your mt5 indicator
- Search “Custom Indicators” in your Navigator mostly left in your Metatrader 5 Client
- Right click on mq5 file
- Attach to a chart
- Modify settings or press ok
- And the Indicator is available on your Chart
How to remove MT5 Indicator from your Metatrader 5 Chart?
- Select the Chart where is the Indicator running in your Metatrader 5 Client
- Right click into the Chart
- “Indicators list”
- Select the Indicator and delete
Click here below to download: