Automatic Trendline Indicator plots the trendlines on an automatic basis with an aim to ease the hassle of drawing the trendlines manually every day. Since these trendlines represent future support/resistance references, you can add this indicator with any trading strategy, indicators, and technical tools for improving the trading outcomes.
Automatic Trendline Indicator is an ideal fit for newbie traders. Moreover, this indicator can be applied to trade all kinds for forex currency pairs and also fits with any sorts of timeframe charts within the MT4 terminal.
Automatic Trendline Indicator Overview
After the installation of the Indicator at the MT4 terminal, your chart will appear like the image below:
Automatic Trendline Indicator Explanation
This Indicator plots the trendlines by connecting the highs and lows of the market on an automatic basis. The blue trendline below the bar represents the support levels and the red one as the resistance levels of the market. For long entries, you must look for bullish pin-bars/candles at the support and for short entries, there should be bearish bars closed right below the resistance levels. This is a bit tricky here but once you get yourself familiar with the candlestick patterns, things will get much easier. As a trendline indicator, this indicator is a good fit for any trend-following forex trading strategy.
Automatic Trendline Indicator: Trading Rules
- A bullish bar forms right above the support-trendline
- Buy triggers at the break of the respective bullish bar’s high
- Set stop loss below the support area
- Exit long/take profit whenever price hits the upper trendline
- A bearish bar forms right below the resistance/upper trendline
- Sell triggers at the break of the respective bearish bar’s low
- Set stop loss above the resistance area
- Exit short/take profit whenever price hits the lower trendline