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A straightforward MT4 indicator that indicates the trend’s direction is the Perfect Trendline Indicator. It has two trendlines: a slow trendline and a quick trendline. The SELL and BUY signals are defined by the lines.
Along with the trendlines, the Perfect Trend Indicator plots dots on the chart. These are the points of entry and exit. There are two hues in the dots: red and green. The green dot indicates a purchase signal, and the red dot indicates a sell signal.
Additionally, the indicator paints classic candlesticks in the hues of red and green. Whereas red denotes bearish momentum, green indicates positive momentum. The Perfect Trendline Indicator leaves the candlesticks when the market is neutral.
When searching for trading signals, forex traders should use the indicator on longer timeframes because it can provide misleading signals on shorter timeframes.
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Perfect Trendline Indicator BUY/SELL signals
The daily GBP/USD chart above uses an indicator to display BUY and SELL signals.
On the chart, the Perfect Trendline Indicator adds trendlines next to the up and down dots. The indicator shows the general direction of the market using dots.
The dots and trendlines support the bullish and bearish momentum for the buy and sell signals, respectively.
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When trading long, forex traders should take note of two things: the green dot’s appearance and the moment the green trendline crosses the red one.
On the other hand, traders should watch for the red dot when the red trendline passes over the green one in order to enter a short position.
The dots’ appearance also serves as an escape signal illustration. It’s time to remove short positions when the green dot emerges. Conversely, it’s appropriate to abandon long positions when the red dot appears.
Take note that the price action occasionally shifts as green and red dots appear. It points to a temporary trend reversal, but the general trend is expected to continue either bullish or bearish.
A perfect trend line is what?
One MT4 indicator that aids in determining the trend’s direction is the Perfect Trendline. These dots and trendlines can be used by forex traders as BUY and SELL signals.
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