The ITrend is a supply/demand indicator, widely popular among trend-following MT4 traders. This indicator closely observes the balance between the buy-sell pressures of the forex instruments.
ITrend makes the accumulation and distribution of the assets clearly visible so that you can quickly assess the present momentum condition and determine the upcoming reversals of the price movements.
The indicator applies a 20-period ADX band and plots two lines at the indicator window showing the +/-DMI value.
The green color line represents +DMI to show an asset’s demand. On the other hand, the red line carries -DMI to demonstrate the supply status of the market. Whenever the lines alter their positions, consider it as a hint for upcoming price reversal.
Anticipating the possible changes in trend direction with ITrend is quite simple. You only need to be able to identify the differences in positions of the +/-DMI lines.
The demand line turns higher than the supply line, indicating the price will make a bullish move in the near future. Conversely, the supply gets higher than demand means it is time for a bearish market trend.
A growing distance between the supply and demand lines indicates an increase in the strength of the current market trend. When the lines get closer to each other, consider the market is going through a deciding moment for future movement direction.
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- The demand line moves higher than the supply line
- The price swings upwards from the recent market low
- Exit long whenever the demand falls behind the supply
ITrend Indicator for MT4: Sell Conditions
- The demand turns lower than the supply
- The price begins to fall from the recent market high
- Exit short after the demand line moves above the supply line