Color Trend FX Indicator – How to Use it Correctly

What is the Color Trend FX indicator, and what is it for? Is it simple? It is a handy tool for trading. Today I will tell you how to use it correctly.

The Color Trend FX indicator shows on the price charts the market entry points, exit points, maximum possible profit of a deal (if you have your own profit-taking system), points for trailing the open positions, as well as detailed statistics.

About Color Trend FX Indicator

Color Trend FX Indicator Settings

In fact, in the settings, there is nothing complicated. Now I will describe in detail.

Main Settings

The most important setting is the Accuracy Delta. So this is the accuracy of the entry filter: the lower the value, the more “noise” in signals. If a value is too large, the signal may be lagging.

Days for Calculation – the number of days for a calculation. This option allows you to examine statistics for some days. Next, I will talk in detail about it.

Delta for Draw Labels (in Pips) – offset (in pips) to display the signals on the chart.

Time Settings

Use Time Filter – Time Filter activation.

Start Hour – hour to start trading.

Stop Hour – hour to stop trading.

GMT Offset – how to set correct GMT Offset read here.

Color Settings

ColorBuy – color of buy signals.

ColorSell – color of sell signals.

CurrentColorBuy – color of buy signals on the current [0] bar‌.

CurrentColorSell – color of sell signals on the current [0] bar.

Notification (Alerts) Settings

Enable Notifications – activate all types of alerts.

Enable Terminal Alerts – activate alerts in separate message boxes.

Send Push Message – send push notifications to the mobile terminals (specify the MetaQuotes ID in the settings).

Send an Email – send emails to the address specified in the settings.

How to Use Color Trend FX Indicator

Here’s another option to close the deal:

So, why do we need to know the maximum possible profit? It’s very simple. If you have an own strategy of profit-taking or you develop your own strategy of profit fixing, you can see how much you can get from the one deal. And to choose the level of profit fixing as you need.

How to Use Average Profit Info

First, we select the number of days for calculating the average price movement relative to the signals of the indicator.

If we chose 14 days, we would see the average price movement in about two weeks (excluding weekends). For a Buy, it’s about +231 pips. For a Sell: +90 pips.

Using this, we can assume the potential of the next deals.

Also, with this option, we can choose the more profitable currency pair (or another instrument) and timeframe. We can check the priority direction (Buy or Sell) on the selected instrument. And also to check the stability of trading by the chosen pair.

As we can see, a buy trade on GBPUSD during the last 14 days gives four times more profit than on sale: 452 pips vs. 109 pips.

How to Close Profitable Positions to Get Max Profit?

First, it is exit points, which are shown by the indicator. They show a quite good result.

Secondly, it is round levels. It is classics. It works in any market. For example, 1.18000, 1.19000, 1.20000… Sometimes we also can use intermediate values: 1.19500, 1.20500…

Important levels from the higher time frames.

Good exit point at EUR/USD M5:

But not so good at M15:

When I plan my trades, I consider several factors. I try to trade only during the European and American sessions (to avoid a flat market). Also, before the trade, I watch high time frames to see strong levels of supports and resistance.

Let see H1:

We see a strong level of resistance – 1.1812, and the price couldn’t break it. It is our possible target in the nearest future.

Go back to M15:

As a result, good exit level – 1.1812

Also, during strong movements, we can use limit orders to re-enter the market.