Trend Direction Force Index Indicator deeply analyzes past market data and transforms them into potential trade signals for its users. This indicator is well-known for its unique way of demonstrating the trade signals which can be read and understood by traders with any level of experience.
Besides the simplicity of use, Trend Direction Force Index Indicator offers great flexibility in trading as well. It can be applied to all kinds of forex currency pair charts to define the market trend. Moreover, this supports all sorts of time frame charts within the MT4 forex trading platform.
Install the indicator at your MT4 terminal, you’ll find your chart like the following image:
Interpretation of Trend Direction Force Index Indicator
Trend Direction Force Index Indicator applies its own parameters of moving averages in order to define the market trends. Its value turns positive (+1) means the trend is bullish. Contrarily, it turns negative (-1) when the trend is bearish. Its value is neutral (zero) when the market is sidelined. Such neutral or no-trend indications can also be considered as the trade exit signals. This indicator also performs as trend signal filters when added with other trend-following trading indicators or strategies.
Trend Direction: Buy Conditions
- Price breaks above its current market high or plots a bullish candle
- The indicator value turns positive
- Activate the buy entry when the above conditions are met
- Set stop loss below the current low of the market
- Exit long/take profit whenever the indicator value turns neutral (zero)
Trend Direction: Sell Conditions
- Price moves below the current market low or plots a bearish candle
- The indicator value turns negative
- Activate the sell entry when the above conditions are met
- Set stop loss above the current high of the market
- Exit short/take profit whenever the indicator value turns neutral (zero)