This is a trend indicator just as the name suggests. It is an effective and yet easy to use indicator that is best even for the forex beginners. It is a good choice for the intraday and the long term trader but not for the scalpers.
It is a lord of predicting the market prices trend.
Understanding the working principle of the TrendLord indicator.
This indicator is displayed on a separate chart below the main window. The vertical scale of its chart is by default se to start from 0 and go up to 0.1 and this range doesn’t vary. The indicator generates/displays bars that are either light salmon or light sky blue in color.
The different bars generated in the indicators chart are the once that indicate the trend of the market prices rather than a line as many of the indicators do. The light salmon bars indicate adown trend while the light sky blue bars indicate an uptrend.
This indicator is not resistant to market noises since it doesn’t have a very well defined filtering mechanism. Therefore it is advisable to use this indicator in combination with other trend indicators like the moving averages. By so doing, you will be able to get rid of the false signals that the indicator gives especially when the market is flat (when there is not much of the market swings in the market).
Fig.1. The TrendLord indicator.
However, you can still go ahead and use this indicator alone. But you have to be very careful and you also have to understand some of the fundamental stuff as to why the market is moving in the direction it is moving into. For example, you have to take into consideration the news that are released.
How to employ the TrendLord indicator in placing and closing orders.
Trading signals are given when the color of the bars that are formed in the indicators chart change color from light salmon to light sky blue.
Placing sell orders
A sell order is placed when the indicator bars change from light sky blue bars to light salmon bars. However, you have to wait for at least the third bar to be formed once the color changes. Once you place your sell order you should proceed and place a stop loss at the highest level of the day and if it is at its highest use a stop loss of 10 pips. Then also set your take profit at a realizable level like 10 pips.
Placing buy orders
A buy order is placed when the indicator bars change from light salmon bars to light sky blue bars. However, you have to wait for at least the third bar to be formed once the color changes. Once you place your buy order you should proceed and place a stop loss at the lowest level of the day and if it is at its lowest use a stop loss of 10 pips. Then also set your take profit at a realizable level like 10 pips.
Fig.2. Forex trading using the TrendLord indicator.
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