Directional Trend Index Blau_DTI Indicator For MT5
Table Of Contents:
- Directional Trend Index Blau_DTI Indicator For MT5
- Trading ideas with the Directional Trend Index Blau_DTI Indicator For MT5
- Directional Trend Index Blau_DTI Indicator For MT5 - Buy Entries
- Directional Trend Index Blau_DTI Indicator For MT5 - Sell Entries
- Directional Trend Index Blau_DTI Indicator For MT5 - Conclusion
The Directional Trend Index Blau_DTI Indicator For MT5 was developed on the work of the famous trader William blau. It is based on the Composite High/Low Momentum calculation. Multiple EMA calculations are done to retrieve the indicator values.
Partially Automated Trading Besides Your Day Job
Alerts In Real-Time When Divergences Occur
The Directional Trend Index Blau_DTI Indicator For MT5 works on the current price momentum. The indicator is often called the most advanced tool as it analyzes the composite highs and lows of the market.
The composite highs and lows are also related to dynamic market momentum, divergence, and price change in the instrument. William Blau integrated all these important metrics into a simple indicator so that they can take the quality trades without having any major trouble.
But making money in the complex trading industry is a tough task based on one simple indicator reading. The Directional Trend Index Blau DTI needs a well-balanced trading strategy so that it can work precisely.
No indicator should be considered as a standalone tool in taking the trades. The best result can be found when you take the trades considering it as a filter tool. But remember, it is a very sophisticated tool and unless you learn to use it effectively, you won’t get the best result from it.
Trading ideas with the Directional Trend Index Blau_DTI Indicator For MT5
Since the composite highs and lows are used, we must depend on a trading method that uses the higher time frame. A higher time frame trading method is extremely profitable and it can provide a great level of ease in taking the trades.
People who are using this indicator for the very first time should be careful about the synchronization errors. That means the trade setups in the strategy and the indicator will have a big lag.
But this can be solved by taking trades in the major assets. That means the filter works best when the data is taken for the major currency pairs. But never get confused by taking random trades. Follow strategic steps so that you can earn enough money without losing too much.
Directional Trend Index Blau_DTI Indicator For MT5 - Buy Entries
Before you move on to the long trade setup, you might run into the problem with this indicator as it has two files. Follow the installation instruction precisely as they .mqh and .mq5 files must be put in the designated folder.
After you have done the things in the precise order, you should see a blue color oscillator that oscillates between 25 to – 25 levels. These are the most important levels to take the trades in the market. Find the potential support level in the chart and look for the buying signals. As you find the buying signals, you should be looking to open the trades with low risk.
Instead of doing that, you should head to the Blau DTI indicator reading. The oscillator signal curve should bounce from the 25 zones and it should slowly head upwards towards the -25 level. As you spot the bullish rally in the Blau DTI indicator, it is safe to assume that you can take the long trade with low risk. Once you open the trade, be careful about the risk exposure.
Just because the composite level or the critical highs and lows are used, you should not increase the risk. The maximum risk you should be taking with this trade is only 2% of the account balance. And try to trade the higher time frame signal as the reading in Direction Trend index Blau DTI is more precise in the hourly and daily chart.
Directional Trend Index Blau_DTI Indicator For MT5 - Sell Entries
To open the short trade, you need an existing trading strategy that can find the potential selling point in the chart. After you find the potential selling point in the chart, you should be looking for the bearish price action signals.
In this method, we will learn to take the trades with the bearish price action signal. Once the bearish price action signal is formed at the resistance, it’s time to look at the important metrics of the market.
The resistance zone should match with the selling reading of the Blau DTI reading. That means the blue signal line in the Blau DIT indicator should start falling from the positive 25 levels.
This free fall in the Blau DTI tells us the market has gained strong bearish momentum and ready to take create a new low. As you start depending on the Blau DTI indicator, you should be very careful about the major trend. In case you want to take the trades against the existing trend, it is going to be a very big challenge to overcome the issues at trading.
But if you manage to take the trades with the trend, you should have zero trouble in taking the trades. However, in the counter-trend trading method, you can decrease the risk profile by taking the trades with the help of the PA signals.
Directional Trend Index Blau_DTI Indicator For MT5 - Conclusion
People who are used to the Blau DTI indicator never use complex trading methods. The success rate of this indicator is very high. If you manage to take the trades with a simple trading module, you can expect to win more than 80% of the time. But it doesn’t mean, the use of indicator is making the system perfect.
The filter can increase the win ratio of the trades by 10-20%. So, if you intend to use a strategy that has a 60% win rate, you can expect to win 80% of the time with the help of the Blau DTI indicator.
But special care should be taken when you take the trades with the help of this indicator. Forgetting about the key steps and trying to earn a significant amount of profit with the help of this indicator is never going to work. For the safety of the capital, you should keep the trades in a structured way and this should give you a great level of ease in the trading process.
Never become too much biased with the trading method or the indicator. Everything needs to be done in a systematic order so that you can withstand a few losing trades with a big smile. Never become a greedy trader as it can create a big problem for your trading business.
