The Universal Trend Forex Indicator represents a multifunctional Exponential Moving Average (EMA) based trend indicator for MT4.
This indicator applies 9, 26, and 55-period EMAs for determining the market trend. It shows the trend conditions based on EMA crossovers and their individual readings.
The crossover between 9 and 26 ema signals the bullish or bearishness of the short-term market trend. On the other hand, the 26 and 50 EMA crossover hints at changes in the long-term market trends.
The Universal Trend Forex Indicator uses arrow signals to show the bullish, bearish, and neutral positions of the market trend. One major drawback of this indicator is it doesn’t include Euro and GBP in its trend signal list.
This guide explains how to apply the Universal Trend Forex Indicator in MT4 for determining profitable trade signals.
In the above example, the CHFJPY price rejects the immediate support at 133.97 and starts heading north.
At the same time, the indicator shows four trend arrows (out of five) that turn green and point upwards, indicating an overall bullish trend condition. On the other hand, the JPY shows only three bars in the bullish trend position.
So, we assess that CHF is in a stronger bullish trend than JPY and activate a buy order of the CHFJPY pair.
In the above example, we can see four bars of USD (out of five) are blue and point downwards, signaling a solid downtrend.
On the other hand, all the JPY bars are green and firmly up, suggesting a strong bullish trend condition. Hence, we expect the USD to decline against the JPY.
Since the indicator confirms the bearish trend of USDJPY, we can trigger a sell when the price starts heading downwards from the top and breaks below its recent consolidation range.