Friday, November 24, 2017

My Favourite Forex Trend Indicators

May 11, 2010 by  
Filed under Fx Indicator

Being able to enter a position in the direction of the trend can be very profitable for your trading. If you have been in this field for sometime now, you will understand that the trend is your friend. However the problem with most traders is that they are unable to identify the trend.

Therefore I will like to share with you some forex trend indicators that I often use to help me in identifying the trend.

Here are what I usually use

1) Multiple Moving Averages – If you want to make use of the multiple moving averages to help you to identify the trend, you can do the following setup on your chart.

All you need to add is a 100EMA, 200EMA and 400EMA. If the 3 EMAs are sloping in a particular direction with good angle and separation, you are in for a good trend. However if you see the 3 EMAs flat and clustering together, you are in a period of consolidation.

Strong Trend

No Trend

If you want to know more about how to trade using moving averages, you can take a look at my previous post.

2) MACD Indicator – This is the next indicator you can use to help you to tell the trend. The setting for this indicator can be as default and all you need is to check whether the MACD and its trigger line is above or below the zero line.

MACD Trend

If you see the 2 lines above the zero line, you are in an uptrend and if you see the 2 lines below the zero line, you are in a downtrend.

3) ADX Indicator – This indicator is not really considered a trend telling indicator. However it can be used to tell you the strength of the trend that you have obtained from the above 2 indicators.

Whenever you see the ADX pointed upward, you are in a strong trending market. Let’s say that you see the multiple moving averages pointing down with good angle and separation and you see the ADX indicator pointing up, you are in a strong trend.

ADX Indicator

The above forex trend indicators are what I usually used to identify a trend and I hope that it will be useful for you as well.

For those of you who are trading without a reliable strategy, you can take a look at my Fx Street Uni course where I will teach you the exact strategies I am using to trade for myself and user of my Forex Signal Service since 2009.

Click Here For My Course

For those of you who are totally new to forex trading, I will suggest that you read through this blog post that I have written for beginners

Forex Trading For Beginners

If you are interested to learn how I do my forex technical analysis, you can take a look at the post below

Forex Technical Analysis Tips


9 Responses to “My Favourite Forex Trend Indicators”
  1. David says:

    Great lessson.

    What them would be a normal setting for TP point with this strategy. Do i need to then monitor until i am satisfied with the profit?


  2. denny says:

    I find Alligator trend line is useful, similar to Moving Average.
    combine it with Bill Williams chaos theory.

  3. Monirul says:

    Hi Kelvin,
    If i look at daily chart time frame i see uptrend. And if i look at hourly chart i see it as downtrend. So it is confusing. Can you explain the situation please?

  4. Rockdrop says:

    Still trying to internalize all of this. My approach is to trade with the trend. Hope it may be useful.

    Btw, in the Multiple Moving Average, I can’t find that in my indicators. Do I need to put in 3 moving averages?


  5. Dan says:

    Pls i will like you to include TF with any analysis you are doing. Thanks for your efforts.

    • Kelvin says:

      Hi Dan

      The reason why I did not include any time frame for some trading examples is because I do not want readers to have the thinking that the method only works for that particular time frame.

      If there is anything that is specific to certain time frame, I will definitely include it in the blog post. So do not worry about the time frame as these indicators work in any time frames.

      • Dan says:

        Thanks alot i’ve started using strategies here in my trading and to the Glory of God, its making positive impact. Keep the good work up.

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