If you are looking for a simple trend-following forex trading indicator which can be applied to trade all kinds of forex currency pairs, Triangular MA Forex Indicator can be a good choice for you. This indicator accumulates past 85-day period data and transforms it into a single slope which is able to identify the market trend as correctly as possible.
This Indicator is quite easier to master compared to other trend-following indicators. This is why it can be learned by traders with any level of trading experiences. Moreover, this indicator works on all sort of timeframe charts available within the forex MT4 trading platforms.
Triangular MA Forex Indicator: Explanation
The Forex Indicator appears at the main chart window like the image below:
Triangular MA Forex Indicator plots the trend-defining slope around the price bars in order to signal the market trend. If you are familiar with the use of Moving Averages, it’ll be much easier for you to understand its signaling system. Price closing above the indicator level means the trend is in bullish mode and for bearish trend, the price bars must be closing below the slope. If you counter several bullish bars right above the indicator slope and the high of the respected bars are broken by the following price candles, you may consider it as a time to go for the long entry. For going short, there must be 1 to 3 bearish candle formed closely below the indicator level and trigger the short entry whenever the low of the respective bearish bars are broken.
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Triangular MA Forex Indicator: Trading Rules
- Price keeps closing above the indicator level
- 1 to 3 bullish bars are formed right above the indicator level
- Trigger the buy entry once the high of the respective bullish bars are broken
- Set stop-loss right below the indicator slope
- Exit long/take profit whenever a bearish bar forms below the indicator level
- Price keeps closing below the indicator level
- 1 to 3 bearish bars are formed right below the indicator level
- Trigger the sell entry once the low of the respective bearish bars are broken
- Set stop-loss right above the indicator slope
- Exit short/take profit whenever a bullish bar forms above the indicator level