What Is the Power Trend Indicator?
The Power Trend Indicator or simple trend indicator is a market direction indicator for mt4, and you can download it below. It is an essential part of traders’ trading strategy and can prove to be immensely helpful to understand the market trends more accurately. Furthermore, this indicator can be downloaded for free and is easy to use. Therefore, both beginner and expert traders can benefit from this indicator.
Free Download Power Trend Indicator MT4:
Trading by the market trend is a fundamental trading strategy. Almost every trader includes this strategy in their trading analysis. They examine the current market trend, analyze if it is strong or if there will be any reversal, and accordingly plan the trading position they want to enter. In a highly volatile market like Forex, it becomes essential for traders to examine the market trend before entering any trade.
The movement of the trend is influenced by many internal and external factors to the market. Internal factors include the performance of the asset in the market, behavior of the traders, market sentiment, and much more. External factors may include changes in interest rates, news breakouts, or central banks’ announcements. In addition, many more unexpected factors can influence the trend.
Almost every trader who has been trading for some time now will recognize the trend correctly. But identifying a movement is not sufficient. It is imperative to confirm that a trend is strong enough for traders to enter a long position to enter a trade. To help traders estimate the power of a trend, they can use the Trend Indicator for MT4.
The Power Trend Indicator helps traders to determine both the direction and the strength of the trend. This indicator represents different strengths in different colors. This makes it convenient for the traders to understand if the trend is weak or strong or if there is any possibility of a trend reversal or continuation. This information is imperative to determine the profitable exit and entry points. If traders can estimate the strength, they can prevent exiting the trade early and hold their position to gain maximum profits.
How Does the Power Trend Indicator Work With MT4?
Applying the Power Trend Indicators to your Metatrader 4 terminal draws a histogram on the price chart. The histogram takes the baseline as 0 and illustrates the bars above and below this line. The bars above indicate an uptrend, while below symbolize a downtrend.
Each bar of the histogram is designated with a color. These colors represent the strength of the trend. Four colors can be seen on the histogram, and the following is the list of what these colors mean.
- GREEN – This color on the histogram shows that the trend corresponding to this bar is strong.
- BLACK- This color represents that the trend is weak.
- BLUE- This color indicates that the trend’s strength is moderate.
- RED- Histograms with this color signify the emergence of a new trend.
According to the changes in the color of the histogram, traders can change their positions in the market. For example, if the histogram changes the color to green, traders can open long positions.
The display of the strengths of the trends with different colors makes it convenient for both novice and expert traders to understand the market situation more clearly. In addition, the Power Trend Indicator simplifies the task for traders and prevents them from opening a position at the wrong time. Moreover, this indicator, combined with other technical tools, can help traders become experts in no time.
However, since trends are subject to change due to external factors, traders are advised to keep track of such elements. For example, an unpredictable news release can impact the market immensely. So, it is essential to be aware of such factors while trading Forex or any other asset.