Look for Trend Indicator For MT4
The Look for Trend Indicator For MT4 is a very simple yet powerful tool that can offer highly accurate signals to the trend traders. A simple blue arrow at the bottom of the candle indicators newly formed bullish trend is going to dominate the market. On the contrary, a red arrow suggests, the extended bearish run is going to take place.
The Look for Trend Indicator For MT4 is mostly designed for the trend lovers. Though the novice traders prefer to use this indicator in the lower time frame, we encourage the investors to use it in the H1 and above time frame. Even if you use it in the minute 30 chart, there will be frequent trend change signals and this can easily push you away from the main objectives of trading. Trading requires precision and you must control the frequency of the trades. Since the indicator shows the trend direction with the simple colored arrow, the traders often think it is the ultimate signal.
No indicator can create an ultimate signal for the retail traders. The indicator works as a helping tool that significantly improves the win rate of the retail traders. The Look for Trend indicator creates a blue-colored arrow when the trend is up. You will see a red color arrow during a trend. So, you need a trading strategy that will locate the exact place for the short and long trade. And if you see the arrow formation right at the signal generation place, you do have a better chance to earn a big amount of money. So, it’s a thumb rule that we need a working strategy to use the Look for Trend indicator.
Trading ideas with the Look for Trend Indicator For MT4
A trading strategy is nothing but a set of rules which defines the buying and selling parameters. For instance, a valid trading strategy should give you a precise guideline for the determination of the support and resistance level. By using the guideline, you will get the potential buying and selling zone. Based on your trading strategy, you will look for a definite pattern in the chart near the support and resistance level to take the trades.
There are thousands of trading strategy which you can use to trade the market. But if you want to protect your capital, it is better to develop a simple edge. Since the Look for Trend is a very simple yet powerful tool, we encourage the traders to look for the price action signal. You don’t have to learn about the advanced price action signals at the initial stage. Learn about the engulfing and the doji pattern formation. Once you get the trade signal, look for the colored arrow before you take the trades. Let’s illustrate the process of taking the long and short trades sequentially so that you don’t face any trouble while using the Look for Trend indicator.
Look for Trend Indicator For MT4 - Buy Entries
In an uptrend, the market creates new highs by breaking minor and major resistance levels. As an active trader, you must find the potential support zone and the weak resistance level by using the historic price levels. Once you have determined the key place where you might see a buying signal, it's time to wait for the bullish candlestick formation. After identifying the bullish price action signal at the support zone, get clear from the Look for Trend Indicator.
Getting clearance from the Look for Trend Indicator is a very task. All you need is a little blue arrow mark below the bullish price action signal. But don’t get frustrated if you fail to identify the blue arrow right below the buying signal. The indicator often takes time to evaluate the overall state of the market before creating a new blue arrow. In such a case, you might have to wait for one or two candles. Such a waiting period can increase the potential SL size but it is worth it. It is better to trade with wide stop loss rather than execution a trade without having a strong confirmation from the Look for Trend Indicator.
Look for Trend Indicator For MT4 - Sell Entries
The short trades get triggered when the bearish rejection takes place at major resistance. Deploy your trading strategy and locate the prime place for the bearish reversal. As soon as the price test the major resistance level, you should see the bears are getting more active and trying to close each candle below the opening price. Such behavioral movement in the candlestick suggests that the bulls are getting exhausted. Before the sharp fall, you should be able to identify a reliable bearish price action signal at the key resistance.
The successful identification of a bearish trade setup tells us to wait for the red arrow mark. The Look for Trend Indicator will evaluate the highs, lows, and momentum of the assets. If the algorithm detects that the price is going to lose its bullish steam soon and the bears will impose a heavy threat. But this should not make you excited and push you to trade with high risk. People who trade with high risk usually fails to evaluate the gravity of the investment business. Since the outcome is completely random, investors should rely on a simple trading technique and always trade with low risk.
Look for Trend Indicator For MT4 - Conclusion
In the last paragraph, we have emphasized the role of money management. Some people often ask for the Holy Grail in the Forex market. We can proudly say, risk management factor is the only Holy Grail that you can have as a trader. So, use the Look for Trend Indicator as a filter tool only. The arrows are formed by the advanced algorithm of the indicator but it doesn’t have the potential to analyze the sentiment of the market. So, if the market sentiment shifts, you are going to lose money even after getting a strong confirmation from this premium indicator.
The best way to survive in the Forex market is to rely on the simple logic of trading. Use a trading journal and get the confirmation from the Look for Trend Indicator before each trade. Just because the signal is presented in the form of a simple arrow, it doesn’t mean you are dealing with a weak tool. Most simple tools have the most sophisticated algorithm which holds the key to success.