The Automatic Trendlines Histogram Indicator is an MT4 technical analysis tool. It plots automatic trendlines and demonstrates trend signals at the same time.
The automatic trendline defines the dynamic support/resistance levels that help you to anticipate the trade entry levels. Besides, auto-trendlines, it also uses a trend oscillator for defining current trend conditions.
The automatic trendline tool of the indicator spots the market highs/lows and connects them to draw the trendlines. The red lines below the price candle show the bullish trendline and the green line above the price candle represents the bearish trendline.
The automatic trendline gives you the primary indication about the possible direction of upcoming trends. Next, we’ll get the final confirmation about the trend reversal when its oscillator changes its histogram bar’s color.
The Automatic Trendlines Histogram Indicator is equally well in defining both trendlines and trend directions. We’ll look for buy opportunities when the price rebounds higher from the red trendline levels. The histogram bars turn yellow means the trend is confirmed as bullish and it’s time to open a buy order.
When the market is trending bearish, the price begins to plot lower highs and lower lows. During such periods, the indicator relates the lower highs to address the bearish trendlines. Go for sell orders when the price rejects the bearish trendline area and the histogram bars turn yellow at the same moment. Moreover, you can use the automatic trendline as the stop level for both buy and sell orders.
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- The price breaks above the red trendline
- The price rejects the green trendline and treats it as a support
- SL below the current trendline support
- Take profit when the price rejects a trendline resistance
- The price breaks below the green trendline
- A red trendline appears above the candle and the price treats it like a resistance
- SL above the red trendline
- Take profit whenever the price rebounds from a trendline support