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 as well as instant alert messages.
How Can I Use This for Trading?
This indicator can be an addition to your other favourite indicators or used on its own to identify when a trend cycle is changing and to open a new position, an audible alert of your choice as well as a message on the screen will tell you to Buy or Sell.
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 the 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.
What Kind of Alerts Are There?
The alerts are a pop-up message on the screen, an audible sound that you can configure yourself, an email message and a free instant telegram message.
Install the Telegram App on your mobile phone and receive free instant messages, you no longer need to pay using an SMS service.
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 it to get the best results
- MA Period #2: This is used in a formula to calculate the single MA dot, adjust it to get the 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
- Signal spacing - this determines where alert text is displayed from the dots.
- Show Text - display trend direction text.
- Bot token - click here to find out how to get your telegram bot token
- Chat ID - click here to find out how to get your telegram chat id
- Show pop-up - when a signal occurs a message will be displayed on the screen for (x) seconds
- Pop-up delay - this is the number of seconds the pop-up message is displayed on the screen
Moving Average Calculations
The trend indicator uses 3 simple moving averages and a special formula to calculate where the trend dots are placed, you may see only 2 periods in the settings, this is because 1 is used for a single indicator and the other 2 have a special calculation each, but uses the same period value.
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.
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 all future signals will only happen after the set number of confirmation dots as the trend reverses.
Watch a Video Demonstration
The video has been uploaded to 1080p High Quality, so do not forget to set your U-Tube video quality to 1080p HD.
Duration: 12 minutes
How To Install
First, make sure you have the cTrader trading platform installed and then simply unzip the file and double-click on it to automatically install it onto the platform.
Join Telegram Community
You can join a Telegram community and chat with other traders to discuss, share and ask for help.