The Floating Signal Trend forex indicator displays a signal line that is floating around a short-term trend moving average line in a separate Metatrader 4 window.
The signal line is blue colored while the short-term trend moving average line is red colored.
- A bullish short-term trend occurs when the blue signal line crosses above the red moving average line from below
- A bearish short-term trend occurs when the blue signal line crosses below the red moving average line from above
The Floating Signal Trend forex indicator needs to be traded in agreement with a longer term trend following indicator.
Examples include: 100 simple moving average, 75 exponential moving average, Bollinger Bands, Parabolic SAR,…
The idea is to trade in the overall direction of the longer term trend and to avoid signals against the longer term trend.
By doing so, this reduces the number of false signals greatly.
Longer trend direction up? Trade bullish short-term trend crossover signals and ignore the bearish short-term trend crossover signals.
Longer trend direction down? Trade bearish short-term trend crossover signals and ignore the bullish short-term trend crossover signals.
The EUR/USD Hourly chart below displays the Floating Signal Trend Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the Floating Signal Trend MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Buy the currency pair when the blue signal line crosses above the red moving average line from below.
Sell Signal: Sell the currency pair when the blue signal line crosses below the red moving average line from above.
Trade Exit: Use your own method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: Short-term trend
Copy and paste the instrend-indicator.mq4 indicator into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)