You must all have heard the saying "trade with the trend" and KISS rule - "keep it simple stupid", well this indicator can assist you in identifying when a new trend starts or ends with a simple visual overlay on the chart in the form of bullish or bearish dots.
How To Find Out The Change In The Trend
When the trend changes the direction you will see the dots change colour, in the example above green is for a bullish trend and red for a bearish trend, the adjustable parameter called "Confirmation dots" will allow you to wait a number of same colour dots before showing a signal or sending an alert. An example would be to set it to 4 dots, so when 4 green dots are formed a solid direction reversal has taken place.
Please note that the indicator will not signal a bullish trend if the price is below the dot when the candle closes and above the dot for a bearish signal.
Configurable Parameters Explained
Your adjustable parameters are shown below with explanations of the less obvious ones.
- MA Period #1: This is used in a formula to calculate the single MA dot, adjust to get best results
- MA Period #2: This is used in a formula to calculate the single MA dot, adjust to get best results
- MA Type: This is the moving average type to be used
- Confirmation dots - how many same colour dots before a trend direction change signal occurs
Confirmation Dots Explained
The confirmation dots are created at the close of the candle because during the candle formation the price moves up and down and will cause the current candle dot to change from bullish to bearish, so when the candle closes we have a solid trend confirmation dot. A 2-dot confirmation will fire a signal at the close of the current 2nd candle and at the start of the 3rd when the 2 previous closed candles show a solid dot.
Telegram & Email Alerts
If you are looking for instant alerts when the trend changes direction then take a look at the cTrader Trend Surfing Alerts indicator.
Indicator First Use (read me)
When you first attach the indicator to the chart if there is already the number of confirmation dots showing, on the close of the candle and the alert signal will be fired, after this all future signals will only happen after the set number of confirmation dots as the trend reverses.
How To Install & Open Indicator's
First, make sure you have the cTrader trading platform installed and then simply unzip the file and double-click on it to automatically install onto the platform.
Instant Chat Support
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* Manual trading only - source code not available.
* This indicator is used with the WAE Trading System