As practice shows, trading along trend lines is the best option for making money on the Forex market. But in order to get good trading results, you need to be able to correctly draw trend lines. As they gain experience, traders do it quickly and easily. However, for newcomers to the market, plotting trend lines can be a challenge. Therefore, it is better for novice traders to use the appropriate indicators. I’ll tell you about one of them today. This is an indicator of trend lines Trend Lines Auto, the algorithm of which is based on the readings of another indicator – ZigZag. We will not see it on the chart. We need trend lines. They will be displayed on the price chart.
In order for this tool to be convenient to use, you need to select the necessary settings in the parameters.
Configuring Trend Lines Auto
In MT4, the indicator is installed in the usual way. Place the file in the appropriate folder of the program directory. You will see the download link at the end of this article.
And now about the parameters.
In the process of trading, you can open trading positions both on a pullback from the trend line, and on its breakdown. There is a Break function for choosing a trading method. If it is activated (true), then the trend lines indicator will give a signal that the price breaks the trend line. If this parameter is disabled (false), then Trend Lines Auto will signal a rebound from the trend line.
To display the second trend line on the chart, you need to activate the Expand function.
Activating UseAlert will cause the indicator to beep if the price starts approaching the trend line. Arrows will appear on the chart.
If sound signals are not needed, then they can be disabled in the settings using the AlertSound parameter.
If you prefer to receive notifications about the approach of the price to the trend line in the form of a pop-up window, then you must activate the AlertMessage parameter.
In order for all alerts to be saved in the log, you must enable the AlertDebug parameter.
And finally, the last three parameters (ExtDepth, ExtDeviation and ExtBackstep) are responsible for setting up the ZigZag, which is the basis of the Trend Lines Auto indicator algorithm.
How to trade trend lines
The most popular trading option involves opening trades on a trend bouncing off the trend line. However, you can enter the market even if it breaks out, which may indicate the beginning of a new movement. But in this case, you need to be very careful, as the breakout may turn out to be false. It is necessary to wait for confirmation of the change in the current trend.