Forex Trend Scanner Indicator
Forex Trend Scanner will help you find the prevailing trend. You can use this tool to manage your trading.
Description
Are you new to trading and can’t find the direction of the market? Are you an older trader but still don’t know about trend reversals? Forex Trend Scanner is an excellent indicator that reports the continuation or reversal of a trend.
What is the Forex Trend Scanner indicator?
As a trader, you must know about candlesticks. However, predicting market movements is not easy unless you know the different candlestick patterns. With Forex Trend Scanner, you can easily find trends just by the colors of the candles.
Typically we have two candle colors: red for bearish candles and green for bullish candles. However, the Forex Trend Scanner indicator shows four colors. Two additional colors indicate a trend reversal.
How to use the Forex Trend Scanner indicator?
You can use the Forex Trend Scanner to find new trading opportunities or manage existing trading positions. Let’s find out what the colors of the candles mean.
Lime Green:Indicates a prevailing bullish trend.
Dark green:indicates that the bullish trend has begun to weaken.
Red:indicates a continuing bearish trend.
Burgundy: indicates that the bearish trend has weakened.
If you look at the chart, you will immediately understand whether you will be able to maintain open positions or close them depending on the color of the candles.
For example, if you are holding a long position, look at the chart and if the candles have started to turn dark green, it shows that the bullish trend is now weakening and you can close the existing position and open a new one depending on the color of the candles. .
Trading strategies with the Forex Trend Scanner indicator
Let’s learn about trading strategies.
Buy installation
- After a bearish move for at least 15-20 candles, look for red candles that will turn maroon.
- Wait for a new lime green candle to appear.
- Enter a long position after the bullish candle closes.
- Place stop losses near local lows.
- Close the trade with a profit as soon as you see dark green candles on the chart.
- Alternatively, you can set your take profit target to 1.5 times your stop loss.
Sell setup
- After a bullish run for at least 15 – 20 candlesticks, look for lime green candles to turn dark green.
- Wait for a new red candlestick to appear.
- Enter the long position once the bearish candle closes.
- Place stop-loss near the local highs.
- Close the trade in profit once you see maroon candles on the chart.
- Alternatively, you can put a take profit target 1.5 times the stop-loss.
Output using the Forex Trend Scanner indicator
Although the indicator can be used as a standalone tool for your trading strategy, but you should keep in mind that this tool has few disadvantages. When you find an entry signal, the price may move strongly towards the trend and you will not be able to make much profit.