Best Trend Confirmation Indicator MT4

Best Brokers List

Best Trend Confirmation Indicator works with any broker and any type of account, but we recommend our clients use one of the top forex brokers listed below:

The Best Trend Confirmation Indicator is a powerful and user-friendly tool that encompasses various indicators and signals to assist traders in spotting potential trading opportunities. The key components of this indicator include:

1. Full Fractals Indicator: The basic levels for opening an order, StopLoss, and TakeProfit are derived from the Full Fractals Indicator. These levels are represented on the chart, but can also be disabled if preferred.
2. Valable ZigZag Indicator: This component determines the trading direction for the instrument. When the ZigZag indicator points upward, it signifies an ascending trend, allowing only buy trades. Conversely, when the ZigZag points downward, it indicates a downtrend, permitting only sell trades.
3. Order Placement Lines: The indicator plots lines for placing Buy Limit or Sell Limit orders, as well as lines for setting StopLoss and TakeProfit levels.
4. Information Panel: A comprehensive information panel provides valuable insights, including trend directions on different timeframes, signal indicators, time remaining before the current candle closes, and the color-coded trend reversal levels on higher timeframes.

The Triple Screen Trading Method

The foundation of the Best Trend Confirmation Indicator is based on the Triple Screen trading method, advocated by the renowned trader Alexander Elder. The Triple Screen approach involves analyzing charts of different timeframes simultaneously, providing a more holistic view of the market conditions. The following elements are considered:

1. Trend Direction on Main Timeframe: Determine the trend direction on an intermediate timeframe, usually used for initiating trades.
2. Trend Direction on Higher Timeframe: Analyze the trend direction on a higher timeframe to gain a broader market perspective.
3. Trend Direction on Second Higher Timeframe: Examine the trend direction on the second higher timeframe to further strengthen your analysis.

Conditions for Placing Orders

To execute precise trades, the Best Trend Confirmation Indicator sets specific conditions for placing Buy Limit and Sell Limit orders:

Buy Limit Order

• The Valable ZigZag Indicator shows an upward direction on all three timeframes (as indicated by arrows in the information panel).
• A new UP fractal appears above the candle.
• At least one DOWN fractal is present on the right side of the chart before the swing point of the Valable ZigZag Indicator.
• Ignore the signal if the dotted line color is blue (indicating the new UP level is lower than the previous one).
• Ignore the signal if the price is behind or has already reached the order opening level.

Sell Limit Order:

• The Valable ZigZag Indicator points downward on all three timeframes (as indicated by arrows in the information panel).
• A new DOWN fractal appears below the candle.
• At least one UP fractal exists on the chart’s right side before the swing point of the Valable ZigZag Indicator.
• Ignore the signal if the dotted line color is blue (indicating the new DOWN level is higher than the previous one).
• Ignore the signal if the price is behind or has already reached the order opening level.

All pending orders should be deleted if they remain untriggered for 24 candles from the signal one (Expiration Bar). If the price reaches the TakeProfit level without activating the pending order, the order should be deleted.

Additional Filters: The Best Trend Confirmation Indicator incorporates additional filters to enhance trading accuracy:

• Avoid opening multiple positions for the same trading instrument.
• Skip trading from 23:00 to 8:00 GMT due to market inactivity and potential false pullbacks.
• Begin trading at 8:00 GMT on Monday, ignoring signals received before this time.
• Conclude trading at 16:00 GMT on Friday, ignoring signals received after this time.
• Disregard signals during the first 10 candles after a trade is closed.
• Do not consider signals if the StopLoss size is less than 50 pips on 5-digit quotes.

Closing a Position and Deleting a Pending Order: Open positions should be closed under the following circumstances:

• The Valable ZigZag Indicator changes direction (opposite arrows appear on the information panel).
• On Friday at 16:00 GMT, it is recommended to close all positions at the current price.

Pending orders should be deleted if:

• A new level Down of the Full Fractals Indicator appears above the opening price level of a trade (in the case of a BUY signal).
• A new level Up of the Full Fractals Indicator appears below the opening price level of a trade (in the case of a SELL signal).
• New levels appear on the chart, necessitating the deletion of pending orders and the placement of new ones according to the updated levels.

Risk Management

Proper capital management is vital for sustained success in forex trading. The Best Trend Confirmation Indicator offers a high profitability factor, with a TakeProfit/StopLoss ratio of 3.24. To manage risk effectively, consider the following guidelines:

• Calculate the order volume to ensure the maximum loss does not exceed 1.5% of your deposit.
• Increase the risk of the next order by 0.25% if a loss occurs on the current trading instrument.
• Open the next trade with an initial risk of 1.5% after closing a profitable trade.
• In case of a series of losing trades, refrain from exceeding a risk of 3% per trade.
• After a breakeven trade, maintain the same risk level for the next trade.

Conclusion

The Best Trend Confirmation Indicator presents traders with a comprehensive and reliable tool to identify favorable entry and exit points in forex trading. By combining various indicators and filters, the indicator streamlines the decision-making process and empowers traders to make well-informed trades. However, like any trading strategy, it is crucial to exercise prudent risk management and diligence. By incorporating the Best Trend Confirmation Indicator into your trading arsenal and following the guidelines laid out in this article, you can increase your chances of success in the dynamic world of forex trading.