AutoTrendLines is an indicator for MT4 that spots the most exact trend lines and automatically plots them on the chart. The indicator displays only the most actual trend lines.
If you often rely on trend lines in your daily trading, the given indicator will make it much easier to work with them and relieve you of the need to spot. The indicator doesn’t redraw, but it can change the angle of the lines when new extremes occur. It is best suited for intraday and mid-term Forex trading. The optimal timeframes to work with are M15-H1.
How to trade using the Trendlines Indicator?
Most techniques of trading with trend lines can be classified into two main groups:
- Price bounce (reversal) from trend line;
- Trend line breakout.
- Buy if the price has approached or touched the uptrend line;
- Sell if the price has approached or touched the downtrend line.
Let’s describe the logic behind placing Stop Loss orders using the example of the market situation shown in the picture above:
- It’s recommended to place a Stop Loss order under the previous low by a sufficient number of points so that it’s not triggered by a false breakout.
- Take Profit can be placed at the highest price level within the range of the corresponding trend line (TP1), or the distance equaling the height of the previous wave (TP2).