Signalitics Trend Assistant Indicator For MT4
The Signalitics Trend Assistant Indicator For MT4 can be used to view the historical and current price trends of every time frame on a single indicator pane. Trend on any time frame is determined by the intersection of two Moving Averages curves. In case of a bullish trend, Green dots get printed, while Red dots signify the presence of a bearish trend. This indicator can be a handy tool for traders who employ multiple time frame strategies.
Trading ideas with the Signalitics Trend Assistant Indicator For MT4
When it comes to trend analysis, you need to be mindful of the trend direction on multiple times timeframes. Meaning that you do not trade on a time frame in isolation of the rest of the other time frames especially the higher time frames.
Because you could be entering into a good trade setup on your current timeframe with all the relevant candlestick patterns to support your trade idea. However, in certain cases, you will discover that the market just does not move aggressively in your favor. Thus causing you to not realize much profit, if any.
This tends to happen because the momentum of the higher time frames does not support your trade narrative on the lower time frame. Therefore, it is always beneficial for you to consider using a top-down approach in your trading. It will serve to validate that your trading directional trades are in alignment with the trend direction of the higher timeframe.
This simple approach will drastically improve the efficiency and accuracy of your analysis thus causing you to improve on your overall trading results. As you can see I have attached a screenshot of the indicator below.
So, as mentioned in the introduction it uses the crossover data of the two moving averages to show you what the underlying trend direction is through the use of colored blocks. And it achieves this for every single time frame as shown in the indicator below the price action.
The monthly time frame sentiment will be shown, then the next one is a weekly trend strength, next is a daily trend strength. Followed by the 4-hourly trend strength, the hourly trend strength, the trend of the 30-minute chart as well as a 15-minute chart. When in a bearish market, you will find red blocks across the indicator window, and then when the market is trading in a bullish trend, then you will be shown green blocks in your indicator window.
This is handy to have because it is no longer required of you to switch over to different time frames just to discover which trend mode each time frame is in. All you need to do is simply refer to the colors of the indicator and see which time frames have the same colors and then you can go along with that trade plan, as this actually forms the basis for the trading signals.
Signalitics Trend Assistant Indicator For MT4 - Trade Signals
Essentially what you going to do with me in the next trading examples is that we are going to look for moments where the market prints a reversal pattern. Once we have recognized what pattern is formed, we will then refer to the Signalitics indicator to see if the next two or three higher time frames have the same color blocks as the current time frame.
If they do have the same color, then we will follow through with the trading signal as defined by the candlestick pattern. There is nothing complicated about this. All you have to do is follow through with what has just been iterated. The two trading opportunities which I have cited in the images or image below consist of two sell trading opportunities.
However, if you wish to execute any buy trades, then all you have to do is apply a similar logic with the two main differences stipulating that you would want green dots instead of red blocks, and the candlestick patterns have to be bullish.
So starting off with the first bearish or sell trade setup identified on the far left-hand side there was a bearish engulfing pattern that formed. But before rushing into the sell trade - let us refer to the indicated below to check if the current time frame has a red block and also if the two next higher time frames also have red blocks.
We did exactly that and as you can see it was confirmed that the two higher time frames in question had the same color. Next up we have a similar situation where there was also a bearish engulfing pattern but this move was more aggressive because the market accelerated downward after the pattern was formed.
However, when making reference to the indicator we can see that the 15-minute 30-minute, and the hour-time frame all have red blocks thus deeming the market conducive for selling. Therefore it was a great opportunity to capitalize on a sell trade. One thing you should know is that you should not have to rely exclusively on the engulfing pattern. It is just that in our instance these were one of the more prevalent patterns which agreed with the intended trend or trading motive.