Commercial systems that shout from the roofs how good they are, honestly, two kopecks. Many systems promise you the moon on wood, guaranteed. However, very often the reality is far from promised.
So when I come across a system that looks professional with underrated marketing, it catches my eye. Trend Signal has a well-established reputation in the business community, so I made it a priority to review software on behalf of my members.
The Trend Signal package offers six indicators that you can combine to evaluate potential trading. Each of these is created automatically, so you just need to figure out how best to trade them together. Indicators work in all periods և in all markets, provided there is sufficient liquidity (enough people to trade in the market). Here are 6 indicators.
1. Price envelopes. they work around the moving average of stocks or the Forex price. The most common price envelopes are Bollinger Bands or Keltner. The underlying logic is similar to the law of the average, which says that everything revolves around the average or “normal” state. Sometimes everything goes to extremes, և you get an activity that is much more than usual. When that happens, theoretically everything should start to normalize again. Trading envelopes revolve around the moving average of the upper and lower zones. These upper and lower belts act like stretch marks on a wrestling ring. Most of the price action will take place within the ring, but sometimes the price action becomes extreme, hitting the ropes. The ropes are elastic, so this extreme action is likely to result in a rapid return. When this happens, you can use the price envelopes to predict when the recall date will be. Like an American wrestler who runs on ropes, the harder he hits them, the faster he bounces. Trend Signal draws its price envelopes. The idea is to use them to spot points when a trend is likely to change or continue. Reversals of the trend to the bottom or top of the envelope offer the greatest potential for rewards, as they indicate that the price has reached an unstable level.
In the screenshot below, you can see the envelope at the top, which goes down at the top of the picture, moving the center around the center (ending at 589), the half between the two dotted.
2. Trend signal. This was the initial indicator of the software. There is a popular trading maxim that says “Trend is your friend”. Everything is fine, but how do you know when a new trend starts or an old one ends? Trending can be very lucrative, but entering too early or too late can be devastating to your financial health. Trend Signal helps you spot the trend with one easy gesture. When it goes from green to red, it signals that a change in trends is imminent. The trend signal is at the bottom of the chart, ranging from 1 to 100. The line is designed to represent the emotional state of the market. The line itself changes to green to represent buying pressure and red to sell pressure. The strategy is to receive signals when the trend signal goes from green to red and vice versa. Good signals occur below 30 և above 70,, best signals occur below 10 և above 90:. The idea is that when the trend signal reaches such a high level as 90, the market is already bought, ready to pull back. When the trend signal reaches a level like 10, the market is sold և ready to jump. Therefore, the reception of signals based on red from green or vice versa is more valid.
3. Key points. Trend Signal automatically draws horizontal lines, known as key points. These are often based on previous highs և to present possible future points that will change the trend. These key points can be very helpful in setting up stops or price targets. The price usually slips or hovers around these levels to make them incredibly useful.
4. Sniper rifles. These are the yellow circles on the chart that represent a significant potential trend reversal. They appear when the Trend Signal detects the following:
- The key point is close
- Trend signal turns green or red.
- Reverse candlestick pattern.
Sniper rifles are relatively rare, but take up 60% of high-profit deals. The absence of a sniper rifle does not mean that the trend will not change.
5. Vector average. This is a short-term indicator of the trend և going from red to green և vice versa. The vector average is displayed with the price as the moving average. Green indicates: upward trend and red indicates a downtrend.
6. Step stop. This indicator will fall behind the price and will be adjusted depending on the severity of the trend. This stop is not perfect, but it is a very useful guide.