Instantaneous Trendline Filter is a dual-MA based trend-following forex trading indicator. It plots a crossover trend signal which is pretty easy to understand and follow, especially by the newbie traders. Besides producing trade signals, it also guides traders through trailing stops of the market trends by using its own dynamic trendline.
Instantaneous Trendline Filter can be applied to trade all kinds of forex currency pairs listed in the financial markets. Furthermore, this trendline filter suits all sorts of timeframe charts within the forex MT4 trading platform.
Instantaneous Trendline Filter Overview
Download the indicator and install it on your MT4 terminal. Once you’re done, your chart will transform like the following image:
Instantaneous Trendline Filter Explanation
Instantaneous Trendline Filter is combined with a dual MA-based trendline which is, Alpha 8 and Alpha 11. The indicator applied the Typical calculation method on Alpha 8 and Median on Alpha 11 along with a Standard Deviation factor 0.07.
Alpha 8 moves above Alpha 11 signals for the bullish crossover of the market trend. On the other hand, Alpha 11 crosses above Alpha 8 represents the bearish crossover trend of the market.
Since Alpha 11 stresses more on a larger period of data, you can use its levels as the stop-level of your opened trade positions. An opposite crossover to your trade direction should be granted as a trade exit signal.
Instantaneous Trendline: Buy Conditions
- Alpha 8 Moves above Alpha 11
- A bullish candle closes above the current Alpha 8 level
- Buy triggers after the above conditions are met
- Set stop loss below the current position of Alpha 11
- Exit long/take profit once the indicator plots a bearish crossover signal
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Instantaneous Trendline: Sell Conditions
- Alpha 8 Moves below Alpha 11
- A bearish candle closes below the current Alpha 8 level
- Sell triggers after the above conditions are met
- Set stop loss above the current position of Alpha 11
- Exit short/take profit once the indicator plots a bullish crossover signal