Trendline is one of the oldest technical analytical tools used by forex traders. With the development of trading platforms like MetaTrader, traders now have more options of forex trendline indicator. Simple trendline can be the most useful tool in studying the market trends. It is easy to draw, particularly when you use automatic trend line offered the trading platform.
Forex Trendline Indicator: Auto Feature from MT4
A trendline is simply defined as a straight light that connects two price points or more. In forex trading, the trendline can act as a line that shows support or resistance. The resulting line is generally classified into two, namely, up trend and down trend. The trendline can be used for any chart or indicators and for any time period.
Drawing a trendline may not be as easy at it sounds, particularly if the traders are not used to to it. Therefore, MetaTrader 4 offers “Auto Trendline” feature, which allows the traders to draw the trendline automatically as long as the requirements are met.
Tips for Using Forex Trendline Indicator from MT4
Using forex trendline indicator can help the traders to focus on important aspects of market analysis. The auto feature from MT4 is a great tool for new traders and it can be used for any kinds of currency pairs in forex. The Auto Trendline offered by MT4 can help you in many ways, for instance:
Following the trendline as displayed by the trendline indicator. You can use it to judge the trends
Using trendline for stop-loss orders;
Exploring your own trendline by using Auto Trendline. For instance, if your price is above or below the trendline, you can try a breakout strategy;
The best way to explore the forex trendline indicator is adding it with other trading strategies, indicators, and analytical tools. These allow you to improve the trading outcomes as you can make educated decisions on buy or sell execution.