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.

July 31, 2015 by Dominic Walsh Leave a Comment