Ultra Trend Indicator
The Ultra Trend indicator for MT4 is a trend-following tool that displays the underlying trend condition of a financial trading asset.
Description
The Ultra Trend indicator for MetaTrader is a forex trading tool that was developed to display the underlying trend condition of a financial asset. It slopes up and down as the market trends from one zone to the other. A continual slope to the upside indicates a strong bullish trend, while a continual slope to the downside suggests a strong bearish trend.
The indicator doesn’t generate a buy or sell signal like other forex trading tools. However, it would come in handy to confirm the trend direction of the market. Therefore, it is recommended to be used as a confluence for scalpers, day/intraday, and swing traders as confirmation before opening a buy or sell position.
Furthermore, the indicator can also be used by both novice/intermediate and advanced traders to easily determine the trend (bullish/bearish) bias of the market.
How to Trade With the Ultra Trend Indicator
The above image depicts the action of the indicator on a EURUSD pair in the H4 timeframe. It shows a progressive up-and-down slope pointing to the upside, which implies that the EURUSD currency pair is in a strong uptrend.
With the above information, you may be wary of opening any long-term sell setup except when the price is at a strong resistance zone, especially in a higher timeframe.
Conclusion
The Ultra Trend Indicator for MT4 is a lag-free technical tool developed to confirm the trend direction of the market. What’s more, it is free to download.