The Trend Direction Force Index indicator for MT4 is an oscillator built with algorithms that track price movement and volume to determine the trend direction of the market. This powerful technical indicator helps traders to confirm the trend direction of financial instruments with better accuracy.
Furthermore, the indicator can help traders identify sideways markets and possible early trend reversal zones of the price.
Features of the Trend Direction Force Index Indicator for MT4
The indicator determines a financial instrument’s strength (or force) by measuring the difference between the current and previous closing prices. The trend direction force is depicted with an oscillator that swings above and below the zero line, between 1 and -1 levels, representing bullish and bearish zones, respectively.
The indicator signals a more bullish force in the market when it moves above the zero line towards the 1 level, while a bearish market force is when it swings below the zero line towards the 1-axis. Conversely, a neutral zone or sideways market is when the oscillator remains within the zero line.
Benefits of Using the Indicator
- Trend Confirmation: As earlier mentioned, the indicator helps traders confirm the direction of the prevailing trend. This reduces the possibility of making trade entries against the direction of the main trend. Besides, traders might be careful of making a trading decision when the oscillator remains within the zero line, which suggests a sideways trend.
- Early Trend Detection: The indicator can help traders detect the beginning of a new trend. Traders can look for opportunities to buy an instrument when the indicator oscillates above the zero line and sell when it swings below the line.
Indicator Settings Description
The indicator comes with the following customizable settings:
TrendPeriod: Determines the period for trend analysis.
TimeFrame: Determines the time frame to begin trend analysis.
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