Length of trend Indicator For MT4
The Length of trend Indicator For MT4 displays the length of trend-lines that are already placed on a price chart in points. This can help traders measure the extent of a trend.
Trading ideas with the Length of trend Indicator For MT4
This indicator expresses the length of a trendline in points so that you can have a quantifiable reference of a specific trendline. However, as you can see I uploaded or inserted in the image below which shows an initial perspective of the indicator the moment it is activated.
But as you can see in the image above there is nothing really showing and that is because this indicator does not automatically scan through the current market and then quantify the length of off all the trends identified. It does not do that - it works in a slightly different manner.
So what you need to do in order to for you to activate it is that you actually need to start drawing in lines yourself and the indicator will automatically pick up the trendline objects and then quantify the length of the trend in the form of points.
The picture below shows that I have drawn in some trend lines and if you can see at the start to the end of the trend line there will be a number specified so looking at the image above you can see that the biggest trend line is an uptrend and it has 2101 points in length which basically translates into 210 pips which is a huge trade move.
But what is unique about this set up here is that there is bullish dominance in the market and furthermore there was a bullish pattern which had formed and it resembled a bullish flag pattern.
Length of trend Indicator For MT4 - Buy Entry
If you look at the bullish flag pattern you can see that it is actually a trend continuation image below.
You can see that the market is currently in a huge bullish flag and therefore it is a good time to actually open up buy trades. So in this instance, I just use the indicator to confirm the length of the pole of the respective flag in this case it was 210 pips approximately. I have drawn in the whole flag pattern using blue lines.
So the idea is to look for bullish breakouts with a few other supporting factors. Furthermore, if you look closely I have also drawn in the support line which occurred at 1.29286. It is at this level where was a long bullish pin bar that had formed and it had a long tail. This long bullish pin bar also signifies rejection for sellers even though they did try to turn the market over but they were unsuccessful.
That was our entry point - the moment the pin bar completed its formation support. It was a good idea to enter and then you must place your stop loss below the flag pattern because the flag which forms the biggest swing low therefore it is wise to place a stop loss right below this region.
The image above details to you where you must place your stop loss and also your take profit target. Your take profit target can go right at the apex of the flag but there is no need to wait for the market to reach this point. You can take profit before this level when you are happy with your positive gains.
What I like about this indicator is that it brings about more precision in your trading in that is primarily due to the fact that you have trend lines that are quantified based on the length. And through that you are able to deduce what is the dominant trend direction in a specific period of time and through that, you are able to formulate trading ideas and trading times that you may capitalize on.
This is exactly what I did in my trading example because I discovered that the dominant trend direction was bullish furthermore there was also a huge bullish pattern that had formed and after that, we were just looking for long entries into the market. Thanks to some confluence courtesy of support and a bullish reversal pattern we were able to finally get into the market with two bullish trades that had a stop loss below the flag and take profit over right at the apex of the flag.
However, it was not necessary for you to wait for the market to reach your profit target because you can simply take profit whenever you are good. Plus it also helps to trail your stop loss - so that you minimize the risk as the market gradually moves in favor of your trade position.
Length of trend Indicator For MT4 - Conclusion
In closing, I just want to say that this indicator cannot be used for you to generate signals on its own - it is not useful in outputting buy and sell signals as it does not work that way.
It is simply a tool that you use to supplement your existing knowledge base and trading strategies in order for you to identify highly probable trade setups that can come in the form of confluence which has more than one supporting factors which strengthen your intended trading narrative.