Free Forex Indicators (MT4), Trend Following Indicators

Extremum Indicator

Extremum Indicator is known as a trend-following forex trading tool among the active market participants. This indicator not only produces entry signals but also defines the strength of the market momentum. This feature helps traders to predict the length of the market trend and forecast the profit/loss margins while trading in the market. Friendly features and simple chart demonstrations have made this indicator quite interesting to newbie traders.

Extremum Indicator is applicable to trade any forex currency pair you like around the financial markets. Furthermore, this indicator fits great with all sorts of timeframe charts within the MT4 trading platforms.

Extremum Indicator Overview

After the installation of the Indicator at the MT4 terminal, your trading chart will appear like the following image:

Extremum Indicator Overview

Extremum Indicator Anatomy

Extremum Indicator Anatomy

The Indicator uses a separate oscillator window for demonstrating the trade signals. For the confirmation of the bullish trend, the indicator value must turn positive. In such a scenario, you’ll see the indicator bars turn blue for better understanding.

Oppositely, the indicator value turns negative and plots green bars to signal the short entry along with the confirmation of the bearish trend.

You’ll also find a dual-band (red & yellow) around the indicator bars. The band gets wider to express the higher strength of the market trend. A narrow band signals the weakness of the current trend.

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Extremum Indicator: Buy Conditions

Extremum Buy Conditions
  • This Indicator turns positive and its bars turn blue
  • A bullish bar forms near the current swing low of the market
  • Buy triggers at the break of the respective bullish bar’s high
  • Set stop loss below the low of the signaling bar
  • Exit long/take profit whenever the indicator band starts to get narrower

Extremum Indicator: Sell Conditions

Extremum Sell Conditions
  • This Indicator turns negative and its bars turn yellow
  • A bearish bar forms near the current swing high of the market
  • Sell triggers at the break of the respective bearish bar’s low
  • Set stop loss above the high of the signaling bar
  • Exit short/take profit whenever the indicator band starts to get narrower

I have been actively trading the financial markets since April 2012. Besides trading with my personal money I am a technical analyst in a mutual fund that has Rs. 1 billion in assets under management. At my leisure, I love attending live music, traveling, and partying with friends.

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About Trend Following System

Trend Following System's goal is to share as many Forex trading systems, strategies as possible to the retail traders so that you can make real money.

Risk Warning: Trading in the forex market is very risky. Thus, it is may not be for everyone. A highly leveraged position can work against the trader when the trade does not work as expected. Trading in the forex market can cause to lose a significant portion of the capital or all of the capital. It is crucial to learn about the trading and gain enough experience in the demo account before trading with real money. The trading strategies published on this website do not guarantee profit as the market is dynamic and unpredictable. The past performance of a strategy is not the indicative of future performance. Trend Following System will not accept any kind of liability or damage caused by trading the strategies published on this website.
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