Auto Trendline MT4 Indicator - Free MT4 Indicator

Auto Trendline MT4 Indicator – Free MT4 Indicator

The Auto Trendline MT4 Indicator will simplify your trading and cut down your technical analysis time by half if you like using Trend lines in your daily trading. Trend lines are one of the classic and oldest price action trading methods. Trend lines are formed by connecting consecutive higher lows, which marks a rising trend line and signals an uptrend, or connecting consecutive lower highs, which marks a falling trend line and signals a downtrend. When one of the trend lines are broken and when taken in context with the larger market structure, it signals a potential short term shift in the trend. This shift could either be a trend reversal or merely a correction.

Most price action traders have at some point used trend lines in their analysis and this approach to classic technical analysis has stood the test of time. However, despite the effectiveness of trading with trend lines, there is a bit of subjectivity involved. The biggest drawbacks with trend line trading is that they need to be adjusted in real time as prices evolve, while in hindsight it is very easy to spot trend lines. Overcoming this aspect of trend line trading can therefore make different trades plot trend lines differently and this is where the Auto Trendline MT4 Indicator can offer a solution to consistent trend line drawing.

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Auto Trendline MT4 Indicator – Settings

The Auto Trendline indicator is a relatively simple automated indicator which plots trend lines by itself. This indicator not only plots the trend lines but also signals the potential take profit levels (or support/resistance levels) where prices are most likely going to reverse of bounce off after breaking the trend line.

Configuring the Auto Trend line indicator

The indicator settings are relatively easy and don’t require much of changes. From the Auto trend line indicator settings, traders can toggle between alerting them to a trend line break, show pop up or email comments, change the colors and size of the trend line and so on. The first picture below shows a snapshot of the settings that can be configured for the Auto trend line MT4 indicator.

Auto Trendline MT4 Indicator - Settings
Auto Trendline MT4 Indicator – Settings


Auto Trendline MT4 Indicator – Trading Rules

When the indicator is applied to the charts, based on the time frame, you almost always get two trend lines. The red rising trend line signals a move to the downside when it is broken and therefore short positions are recommended. Below the rising trend line, you also see a red horizontal line which signals the potential price level that can be reached when the trend line is broken.

Likewise, the falling trend line is signaled by a green trend line which connects the highs. On break of the falling green trend line, long positions are taken which signal a move to the green horizontal line.

The chart below shows how, on break of the red rising trend line, prices quickly move to the downside to reach the specified target level.

Auto Trendline MT4 Indicator - Trading RulesAuto Trendline MT4 Indicator – Trading Rules

 

In the above chart, notice how prices, after breaking the rising red trend line, quickly decline lower and immediately reach the specified take profit level. Similarly, if prices were to break to the upside, breaking above the falling Green trend line, prices would be rallying towards the marked green horizontal line.

The Auto Trendline MT4 Indicator is definitely worth having in a trader’s tool box. While not recommended to trade in isolation, traders could make use of other indicators such as pivot points or even moving averages to get additional confirmation of the signals.

To make it easier, here’s the summary of the trading rules for Auto Trendline MT4 Indicator

Entry Rule
When the price breaks above the green line, it’s time to go long.
When the price breaks below the red line, it’s time to go short.

Exit Rule
We like to exit when we see than the price is moving too far away from the trend line which gives us an indicator that the market is over extended. When this happens, check on the stochastic oscillator or RSI indicator to double confirm oversold or overbought level.

Stop Loss
For long position, use the session low as stop loss.
For short position, use the session high as stop loss.
Be aware that if the session candle is very long, then your risk is higher.
You can either skip the trade or enter a smaller lot size.
It’s all about risk management first, profit second.

Time Frames
Technically speaking, you can use this indicator for all time frames. However, the shorter the time frame, you will see more fluctuation and possibly more whipsaw which may cause small losses that can eat up your portfolio quickly. We recommend that you use higher time frames like the 4H for better consistency.


Auto Trendline MT4 Indicator Download

We have provided this powerful trend trading indicator to you at no cost. We humbly request for your help to spread the word by sharing on one of the social platforms below. To unlock the download link, you just need to share this page to help us achieve our goal of helping more traders out there.

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Leave us a comment below to let us know your thoughts on this indicator. If you like this indicator, you might like see other indicators that we have carefully selected that will help you in your trading journey.

Visit our Free MT4 Indicator Download page. And if you can, you really should invest in a proven MT4 Expert Advisor to help you generate some profit on full auto-pilot. We highly recommend this powerful MT4 Expert Advisor.

We hope you have enjoyed this post as much as we have creating it. Good luck and thank you for your readership.


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