TTM Indicator
TTM Indicator for MT5 provides BUY and SELL trading signals to change the color of the candle on a bullish and bearish trend.
Description
The TTM Indicator for MT5 is the best trend following indicator for forex traders. It is quite easy to identify bullish and bearish price trends. The indicator changes the candle color to BLUE for a bull market and ORANGE for a bear market. So, forex traders can BUY or SELL by changing the color of the candles. The indicator is best suited for trend traders working with technical trend following trading strategies.
The Trailing Twelve Months (TTM) is well suited for beginners and experienced forex traders. New forex traders can spot trend changes and enter the trend early using color changes.
However, advanced forex traders can use the indicator in combination with other trend indicators. The indicator works well on all intraday price charts as well as daily, weekly and monthly price charts.
TTM Indicator For MT5 Trading Signals
The above EURUSD H1 price chart shows the TTM Indicator for MT5 in action. The indicator shows bullish candles in BLUE and bearish candles in ORANGE. Depending on the color of the candles, Forex traders can open BUY or SELL positions.
If the color of the candle changes from ORANGE to BLUE, it indicates the start of a bullish price trend. Thus, Forex traders can enter the market with a BUY position. The best take profit point is the opposite trading signal as this allows traders to fully move with the trend. However, technical traders can exit a position with a profit if the risk/reward ratio is good. The best stop loss for this position is the previous swing low, however the opposite trade signal is also a good exit.
Similarly, if the color of the candle changes from BLUE to ORANGE, this indicates the start of a SELL signal. So, forex traders can open a SELL trade and follow a bearish trading strategy. The best point to take profits is the opposite trading signal as it helps the trader to take advantage of the trend. On the other hand, forex traders may exit if the trade achieves a good risk/reward ratio. As for the stop loss, it is better to exit on the opposite trading signal. On the other hand, technical traders may exit above the previous swing high.
The indicator works well for a top-down technical analysis approach. The trend on long-term charts usually lasts longer and is generally stable. Thus, forex traders can use higher time frame price charts to determine the overall trend. While lower time frame charts can be used to determine the best entry point.
Conclusion
The TTM Indicator for MT5 helps forex traders identify the trend in the first place. Understanding the trend direction allows the technical forex trader to add additional technical analysis. Being able to move with the trend and take advantage of the entire trend helps the trade to be more profitable. However, traders can use price action and other indicators to achieve the best results. In addition, the indicator is free to download and easy to install.