The Trend Magic Metatrader 4 forex indicator is a technical indicator that combines the Commodity Channel Index (CCI) and Average True Range (ATR).
It is this combination that allows the Trend Magic indicator to spot possible market entry points, while also plotting the trend direction on the MT4 chart.
The indicator pops up as a single line on the activity chart that changes its color between blue (when price is bullish) and red (which depicts bearish market sentiment).
The Trend Magic indicator’s blue line color typifies price closing above its level, while its red line color is issued when price closes below its level.
It is commonplace to find a lot of newbies who are interested in this technical tool simply due to the clear signals it gives.
The USD/JPY H1 chart below displays the Trend Magic Metatrader 4 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the ascending line of the Trend Magic Metatrader 4 forex indicator turns blue with price aligned fairly above.
Sell Signal: Go short when the descending line of the Trend Magic Metatrader 4 forex indicator turns red with price positioned slightly below.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, the line of the Trend Magic indicator turns red.
Exit sell trade: Close all sell orders if while a bearish trend is running, the line of the Trend Magic indicator changes to blue.
Tips: The line colors of the Trend Magic indicator can be changed to suit your visual representation on the chart window.
Traders can also adjust the CCI and ATR variable found within the indicator’s inputs parameter setting for a more personalized user-experience.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern indicator
Customization options: Variable (CCIPeriod, ATRPeriod), 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-magic.ex4 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)