This are very complicated indicators to use. They are not fit for the forex beginners since they are not straight forward when it comes to interpreting the signals. The interpretation of the signals that this indicators give will wholly depend on the understanding of the forex market. There is the possibility of two trader to interpret the signals of these indicators differently and thus place two opposing orders on the market.
This comprises of two indicators which are the TrueTL v1.01 and TrueTL Alert V1.01. The TrueTL Alert V1.01 is concerned with the different alerts of the indicator while the TrueTL v1.01 is the one that is responsible for the display of the line on the chart.
This indicator is based on the use of the trend lines. It has 11 uptrend lines and 11 down trend lines. The downtrend lines are drawn heading downwards while the uptrend lines are drawn heading up.
Fig.1.The TrueTL indicators explained on a trading chart.
Some of the trend lines are not visible unless you condense the chart. Also some of the trend lines are in the same level; hence not visible. This is the reason as to why you find that at some point a certain trend line may seem as if it has divided itself into two. If you condense the chart, you will notice that there are some trend lines that are brown in color. These trend lines may be either downward trend lines or the upwards trend lines or both. Then if you look closely, you will see that there are some nodes on some of the trend lines. If you highlight some of the nodes you will find it is a downmax or an upmax. This nodes can occur on the white colored trend lines or the brown colored trend lines. However the downmax and the upmax are found on the yellow trend lines.
Trading using the TrueTL indicators
When using the TrueTL indicators to trade, the trader mainly looks ate the instances that the market prices gets below the uptrend lines or below the downtrend lines.
The trader should place a sell order when the market prices cross an uptrend line. At this point the market is expected to continue on a down trend for some time. If the market prices cross any of the downtrend line, the trader should place a buy order.
- Sell – if a bar/candlestick cross an uptrend line.
- Buy – if a bar/candlestick cross a downtrend line.
After placing any order the trader should place stop levels.
How do the trader distinguish where to place the stop levels? The trader should place take profits of sell orders at the lowest level that the market hit in the previous day. In case of the buy orders, the trader should place take profits at the highest levels of the previous day.
For the stop loss levels, the trader should always constrain himself or herself to a level of 150 points that is 15 pips
NB: The trader should not place another trade when a trade closes by the stops unless a signal is given (crossing occurs).
Examples explaining how to place the trades.
Fig.2. Placing a buy trade using the TrueTL indicators.
Fig.3. Placing a sell trade using the TrueTL indicators.
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