Trend Continuation Factor Indicator
Forex market trend continuation, from the best Trend Continuation Factor Indicator for MT5. Find the direction of the trend.
Description
The trend continuation factor indicator is an MT5 indicator that uses moving averages to draw two lines on the chart. These are the TCF1 and TCF2 lines.
TCF1 has a shorter period while TCF2 has a longer period. Crossings between the two lines indicate the direction of the trend. The indicator is similar to moving average crossovers.
Although you can use this indicator on any time frame, it is better to use it on a longer time frame as the indicator is prone to false signals.
How to use the Trend Continuation Factor Indicator for MT5?
The EURUSD H4 chart below shows the BUY/SELL signals of the trend continuation factor indicator.
The indicator gives a much simpler presentation of trading signals than its MT4 counterpart. The beginning of a bullish trend can be defined as a transition from red to blue on the chart. Conversely, a change in color when the lines cross from blue to red indicates the predominance of a bearish trend.
When TCF1 exceeds TCF2, you can go long. Conversely, when TCF2 exceeds TCF1, you can go short. It should be noted that the indicator may give false signals.
For example, even if TCF1 exceeds TCF2, the price does not move up. Thus, you can either wait for the price to continue moving in your direction, or use other indicators to confirm the signals.
Conclusion
The trend continuation factor indicator shows intersections between two signal lines. When crossovers occur, you can enter a trade.
You can also download the Trend Continuation Factor for free on our website if you want to try it.
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