|The trend trading indicator Trendy Monster is an improved author's tool with additional trading signals and simplified code.|
The indicator consists of three components -momentum, moving average, and Bollinger bands.
The indicator is full of intuitive settings,as well as alerts (sound, mobile, email).
It works on absolutely any currency pair and on any timeframe.
Processing all three information directions in accordance with the algorithm, the indicator presents colored columns at the bottom as the final result. They are interpreted as follows:
- Columns of bright green color indicate the presence of a strong bullish trend, you can enter a deal immediately after the appearance of such a column;
- Columns of bright red color indicate a strong bearish trend, and you can also take a short position immediately after the signal appears;
- Columns of pale green and pink color indicate the presence of bullish and bearish trends, respectively, but these are weak trends that can end at any time, so if you enter, it is with a short stop and a pullback on small timeframes;
- The absence of columns indicates a flat, here this indicator suggests not to trade.
This completely simple system of signals makes it easy to navigate in the current situation, and the indicator accurately works out turning points and changing the color of the columns.
This is due to the serious filtering of signals by the three indicators described, together they give such a high signal processing rate. But you should avoid areas of consolidation, where each oscillation occurs sharply and directionally. This is a trend indicator and similar situations can cause it to show a constant trend change, and with a delay.
Therefore, at the first signs of such a dynamic consolidation, you need to stop focusing on this indicator and look at something from the category of oscillators.