SF Trend Lines Indicator For MT4
Trend trading strategy is one of the easiest ways to secure profit in Forex. Sadly, the majority of the new traders don’t know the proper way to find the perfect trend. For this very reason, the smart developers have created SF Trend Lines Indicator For MT4. It will draw the potential trend line in any asset in the form of the channel and you can easily execute quality trades without having any issues.
Some of you might think the use of SF Trend Lines Indicator For MT4 is not viable in real-life trading. But if you use this indicator in the demo account, you will be stunned to see its accuracy. When you use this indicator, make sure you load in the daily chart or weekly chart. You will not get accurate data in the 1 hour or smaller time frame. Though higher time frame trading might seem boring this is the best way to secure good trades.
Understanding the channel
If you install the SF Trend Lines Indicator For MT4, an automated channel will be drawn. The upper section of the channel will act as critical resistance and the lower portion as the critical support zone. You need to look for a long trade setup at the demand zone and short trade setup in the supply zone. However, there is a small twist to the use of this SF Trend Lines Indicator For MT4. At times you might have more than one channel in a certain asset. In such a market condition, you need to use your intellect and trading skills to spot the best potential trade setups.
Placing the orders
Execution of the trade using the SF Trend Lines Indicator For MT4 requires a clear understanding of demand and supply level. Unless the channel trend line suggests a valid support or resistance zone, you should not execute the trade. Let’s see how the pro traders use the SF Trend Lines Indicator For MT4 to find the potential trade setups.
Figure: Use of SF Trend Lines Indicator For MT4
To find a valid trend line, we need a minimum of three connecting points. However, you can depend on two connecting points to find a valid trend line and the third point will be your trade execution zone. But if you use two significant highs or lows, you should analyze the data in the daily chart. In the above technical analysis, the SF Trend Lines Indicator For MT4 has printed a nice bearish channel. Since the long term and medium-term trend is bearish, we need to look for short orders. The blue shaded region is marked with the number 3 and this is the key spot where you need to execute the short trade.
Increasing your win rate
By now you know the proper way to execute trades by using the SF Trend Lines Indicator For MT4. But if you increase your win rate, you must focus on price action system. For instance, if the price moves towards the blue shaded region, you should not execute any trade. Wait for the bearish price action signal to execute the orders.
No trend is perfect and you will often lose trades by using the reading of SF Trend Lines Indicator For MT4. But if you start trading the market with the help of a price action signal, you have a good chance to win the trade. Learning the details of candlestick pattern trading technique is not all hard. Open a demo account and try to execute a trade based on candlestick pattern trading system. Once you feel comfortable, start trading the market with real money.
Knowing your stops and take profit
Being a fulltime trader, you have to understand the fact, losing trades are inevitable. Stop risking more than 1-2% of your account balance. At the initial stage, place the stops just below or above the trend line based on the nature of your order. For instance, you need to set the stop loss below the trend line support level in the case of a long trade. Though the SF Trend Lines Indicator For MT4 generates high-quality signals, still you need to be careful with your risk management policy.
Take profit greatly varies from trader to trader. The new traders often ignore the importance of the risk-reward ratio in each trade. But if you dig deep, you will understand, the risk-reward ratio is the only way to protect your trading capital. Always make sure the winners are bigger than the losers when using the SF Trend Lines Indicator For MT4.
Trading the major news
The market becomes volatile in the event of major news. Most of the breakout in the major currency pairs is nothing but the result of major news. So, if you use the SF Trend Lines Indicator For MT4, chances are high you will notice a major break in the trend line on the event of such news. So, how do you avoid such a complex situation in real-life trading? You need to trade in favor of the long term trend since most of the breakout associated the channel of SF Trend Lines Indicator For MT4 occurs in favor of the last trend. To be precise, stick to the market trend, to reduce the associated risk in trading.
Trading requires a perfect understanding of money management. To make a consistent profit, make sure you know the proper way to use the SF Trend Lines Indicator For MT4. Though this indicator is supposed to use in the daily time frame, still you can make a decent profit by using in the lower time frame. But when you use it the lower time chart, the market condition must be stable and there shouldn’t be any high impact news. And use the price action signal to increase the win rate in trading.