The Trend Bars forex indicator for Metatrader 4 is a well-known trend following histogram technical indicator that works really well.
Trend Bars oscillates above and below the zero level in a separate MT4 trading window below the main activity chart.
A buy signal occurs when the histogram moves back above the zero line from below, the trend is upward. The histogram now becomes blue colored.
A sell signal occurs when the histogram moves back below the zero line from above, the trend is downward. The histogram now becomes red colored.
The indicator works for any timeframe and currency pair. Scalpers, day traders and swing trader can benefit from the Trend Bars indicator.
For scalping and day trading, use it during the London, New york and Tokyo trading sessions.
Feel free to experiment with the indicator input parameters.
The GBP/USD 1-Hour chart below displays the Trend Bars Metatrader 4 indicator in action.
Basic Trading Signals
Signals from the Trend Bars MT4 indicator are easy to interpret and goes as follows:
Buy Signal: Go long when the Trend Bars technical indicator changes its color from red histograms to blue histograms. Place a stop-loss below the previous swing low price.
Sell Signal: Go short when the Trend Bars technical indicator changes its color from blue histograms to red histograms. Place a stop-loss above the previous swing high price.
Trade Exit : Use your own method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (range periods, price smoothing, index smoothing, alert on) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the trend-bars.ex4 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)