Skip to content

Trading Resources & Education for Forex Traders

Trend Manager

September 28, 2024

Trend Manager

Description:

The Trend Manager MT4 indicator helps traders visualize the difference between a fast and slow moving average, highlighting potential trend divergences. It plots histograms that represent divergence zones and can optionally display the fast and slow moving averages. This indicator is particularly useful for identifying trend reversals and understanding the strength of the current trend by analyzing moving average divergences.

Features:

  • Divergence Detection: Detects divergence between fast and slow moving averages.
  • Customizable Moving Averages: Ability to set different timeframes, periods, and modes for both fast and slow moving averages.
  • Histogram Representation: Displays divergences as histograms in the chart window, allowing for easy visual identification of potential trend reversals.
  • Optional Moving Average Lines: Allows traders to overlay fast and slow moving average lines on the chart for additional confirmation.

Settings/Inputs:

Divergence Limit (DVLimit):

    • Type: Double
    • Default Value: 0.0007
    • Description: The minimum difference between the fast and slow moving averages for a divergence to be highlighted.

Show Moving Averages (ShowMAs):

    • Type: Boolean
    • Default Value: false
    • Description: When set to true, the indicator will also display the fast and slow moving average lines on the chart.

Fast Moving Average Timeframe (Fast_TimeFrame):

    • Type: Integer
    • Default Value: 0 (current chart timeframe)
    • Description: The timeframe for the fast moving average. A value of 0 indicates it will use the current chart timeframe.

Fast Moving Average Period (Fast_Period):

    • Type: Integer
    • Default Value: 23
    • Description: The number of periods used for the fast moving average calculation.

Fast Moving Average Price Type (Fast_Price):

    • Type: Integer (Enum: PRICE_OPEN, PRICE_CLOSE, etc.)
    • Default Value: PRICE_OPEN
    • Description: The price type to use for the fast moving average calculation.

Fast Moving Average Mode (Fast_Mode):

    • Type: Integer (Enum: MODE_SMA, MODE_EMA, etc.)
    • Default Value: MODE_SMA
    • Description: The type of moving average to calculate (e.g., Simple Moving Average or Exponential Moving Average).

Fast Moving Average Shift (Fast_Shift):

    • Type: Integer
    • Default Value: 0
    • Description: The shift applied to the fast moving average. Positive values shift the MA forward, while negative values shift it backward.

Slow Moving Average Timeframe (Slow_TimeFrame):

    • Type: Integer
    • Default Value: 0 (current chart timeframe)
    • Description: The timeframe for the slow moving average.

Slow Moving Average Period (Slow_Period):

    • Type: Integer
    • Default Value: 84
    • Description: The number of periods used for the slow moving average calculation.

Slow Moving Average Price Type (Slow_Price):

    • Type: Integer
    • Default Value: PRICE_OPEN
    • Description: The price type used for the slow moving average.

Slow Moving Average Mode (Slow_Mode):

    • Type: Integer
    • Default Value: MODE_SMA
    • Description: The type of moving average used for the slow MA calculation.

Slow Moving Average Shift (Slow_Shift):

    • Type: Integer
    • Default Value: 0
    • Description: The shift applied to the slow moving average.

Bar Count (BarCount):

    • Type: Integer
    • Default Value: 1500
    • Description: The number of bars back to calculate the indicator values.

Visual Representation:

  • Histogram: The divergence is represented by a histogram:
    • Blue: Positive divergence where the fast moving average is significantly above the slow moving average.
    • Red: Negative divergence where the fast moving average is significantly below the slow moving average.
  • Aqua and LawnGreen Lines: (Optional) Represent the slow and fast moving averages respectively, if the ShowMAs option is enabled.

How It Works:

  1. The indicator calculates the fast and slow moving averages based on user settings.
  2. The difference between these two moving averages is evaluated.
    • If the difference exceeds the divergence limit (DVLimit), a histogram bar is drawn.
  1. The histogram’s color indicates whether the fast moving average is above (positive divergence) or below (negative divergence) the slow moving average.
  2. Optional moving averages are displayed as additional lines to help visualize the trend.

How to Use:

Install the Indicator:

    • Save the .mq4 file in the Indicators folder of your MT4 directory.
    • Refresh or restart MT4 and apply the indicator to your chart.

Adjust the Settings:

    • Customize the input parameters to suit your strategy and timeframe.
    • For example, increase the fast/slow period for longer-term trends or reduce it for short-term scalping strategies.

Interpret the Histogram:

    • Blue Histogram: Indicates an uptrend or bullish divergence.
    • Red Histogram: Indicates a downtrend or bearish divergence.
    • Optional Moving Averages: Use the fast and slow MA lines for extra confirmation of trends.

Recommended Timeframes:

  • Suitable for all timeframes, but more reliable on higher timeframes (H1, H4, D1).

FAQs:

What is the purpose of the divergence limit (DVLimit)?

    • It ensures that only significant divergences between the fast and slow moving averages are highlighted. You can adjust this value based on market volatility.

Can I use this indicator on all assets?

    • Yes, it can be applied to any asset available on MT4, including forex pairs, commodities, indices, and stocks.

What moving average types can be used?

    • The indicator supports multiple moving average modes, including SMA (Simple Moving Average), EMA (Exponential Moving Average), and others.
Scroll To Top