The Slope Direction Line Indicator for MT4 is a forex and stocks day trading indicator. It offers tremendous assistance in analyzing market trend conditions. Besides trend reversal signals it also indicates the lasting period of a trend and the exit period of the active orders.
Slope Direction Line Indicator for MT4 Overview
This indicator only applies a thin colored line across the chart for showing the market trend status.
The change in color of the indicator’s slope determines the changes in trend directions. Its simplicity and accuracy in delivering real-time trend signals offer a great advantage for traders with less experience.
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Slope Direction Line Indicator for MT4 Explanation
The Slope Direction Line indeed looks like a moving average but it doesn’t show dynamic support/resistance levels. Its goal is to keep the traders aware of the beginning and ending periods of market trends.
We consider the market trend as bullish when the Slope Direction line color transforms to blue. The indicator curve remains blue until the price keeps moving in an upward direction. Whenever the price makes a bearish move and moves below a significant level, the indicator changes its color from blue to red for addressing a bearish market trend.
Slope Direction: Buy Conditions
- The price breaks above the Slope Direction Line
- The indicator curve turns into a blue color
- Open a buy order after you get the above confirmations
- Exit long or take profit whenever the direction line turns red
Slope Direction: Sell Conditions
- The price drops below the Slope Direction Line and keeps pushing downwards
- The indicator slope becomes red to confirm a bearish trend
- Open the sell order after you get the trend confirmation
- Exit short or take profit when the indicator level turns blue to confirm the end of the current downtrend market