Trend Magic Indicator
Trend Magic offers the best trend trading solution for beginners. Detects trend conditions and generates daily buy/sell alerts on MT5 charts.
Description
Trend Magic is an MT5 forex trading indicator used to identify trend reversal points in the market. In addition to trend alerts, its trendline will guide you through dynamic market support/resistance levels.
Automatic trendline indicators are ideal for beginners who find it difficult to assess the daily trend of the market manually. In addition, the wrong definition of the market trend can lead to early or late entry, resulting in unexpected losses. Thus, it is important for a novice trader to choose a trend indicator that consistently generates correct trend signals.
Trend Magic closely monitors market dynamics and generates highly probable automatic trend signals. Its higher accuracy in trend-based buy/sell generation makes it more reliable for beginners. In addition, it works on MTF charts and supports trading of all types of forex and stocks.
How to use Trend Magic signals for executing daily buy-sell orders
The Trend Magic indicator does not redraw or lag behind in generating trend signals. It applies a single dynamic trend line on the chart that defines both trend conditions and price support/resistance levels.
This indicator combines the Commodity Channel Index (CCI) and Average True Range (ATR) to determine the direction of the market trend and current positions on the trend line. CCI compares the current price with its historical average to generate buy/sell signals.
On the other hand, the ATR works as a volatility indicator that helps you estimate the entry and exit period of your trades. Initially, ATR was used to determine the volatility of commodity items. Later, the indicator was proven to be equally effective in reducing the market volatility of other instruments such as forex, stocks and cryptocurrencies.
The price moving above the Trend Magic level means that the price is moving above its historical average, indicating a bullish trend condition. The color of the indicator turns blue, which means a buy opportunity after a bullish price trend reversal. While you are long, hold the entry until the indicator turns red.
In a bearish trend, you will find that the price is determined to stay below the current Trend Magic level. The color of the indicator turns red, at the same time it means a confirmation of a sell entry based on the current bearish state of the market trend.
Conclusion
As a no-redraw trend indicator for MT5 platforms, Trend Magic offers one of the best trend following trading solutions for active traders. In addition, this indicator showed no signs of lagging in the formation of trend signals. It generates trend alerts immediately after any trend reversal situations in the market. Based on our review, we found that the indicator is equally effective for both long-term and short-term trending. Thus, you can easily apply it on the MTF charts of your MetaTrader platform for both scalping and intraday trading.