This is a trend following indicator. This indicator is mostly for use by the long term traders. This is because it take a very long time for it to give a signal. The reason behind this is that there are a lot of conditions that have to be met in the indicator’s algorithm before it decides on what signal it is going to give.
For this reason the trader has to ensure that he or she have enough funds in his or her account to withstand some of the retracements that may happen within the trade. However even this being the fact, this indicator is still a very efficient indicator and one will never make losses if it is used correctly and wisely. Once a trade is opened, it may take some time for the trader to start realizing profits but once the profits starts to roll in, the trader will make a substantial amount of cash. Mainly it will take may be a half a day for a signal to be given. Thus, the indicator is not programmed to account or predict the small market swings but rather the long term market trends.
The trend sentry indicator, forms a line that follows the market prices on the trading chart. This line changes its color from red to blue and vice versa. The indicator also gives a text signal that is displayed on the top right corner of the chart. The text is either “Short” or “Long” and it is usually displayed at the instance when the color changes. The “Long” text is green in color while the “Short” text is red in color. Just before the color change, the line tends to have a deep plunge downwards. If you look closely at the line, it is evident that when the line becomes red it is usually above the candlesticks or bars but when it is blue, it is usually below the candlesticks or bars for that matter.
Fig.1. The Trend sentry indicator inserted onto a chart.
How to use the Trend sentry indicator.
Before deciding to use this indicator, you have to meet the following things:
- You have to have sufficient funds in your account in relation to the lots that you want to use in opening the trades.
- You have to be a long term trader, or you are contemplating to use this indicator to trade long term. This is NOT for scalpers.
- Have to be patient and learn to trust the indicator.
Trend Sentry Indicator Placing sell orders: for a trader to place a sell, the “Short” text should be displayed. Then the line should be red and above the candlesticks. As a trader for maximum profit and risk management, you should place your order within a short period after the “Short” text and color change to red occurs. Avoid placing your order too late since you may end up making a loss.
Fig.2. Trend Sentry Indicator Showing how to place a sell and close it.
Placing buy orders: for a trader to place a buy, the “Long” text should be displayed. Then the line should be blue and below the candlesticks. As a trader for maximum profit and risk management, you should place your order within a short period after the “Long” text and color change to blue occurs. Avoid placing your order too late since you may end up making a loss.
Fig.3. Trend Sentry Indicator Showing how to place abuy and aslo how to close it.
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