Forex strategies can be divided into trend and flatter strategies. The first are designed to identify the emergence of strong growth or decline, the second – to scalping or rebound in a calm market. IK Trend is a Forex trend indicator, which, although it gives relatively many false signals, with appropriate filters can be very useful. Read on for how to use it.

Forex Trend Indicator

IK Trend is the original indicator that shows the direction of the trend. Columns blue up – the trend is growing, down – falling. Forex trend line indicator green gives a recommendation to open a position in one direction or another. If the line is directed upwards, this is a signal to open a long position, downward to a short position. In some of its versions there is an addition in the form of a red line, along which it makes sense to navigate when setting a stop loss.

  • If you didn’t find a template for this indicator on the Internet, write about it in the comments and you will send it to you by email for free.

The indicator’s operation principle is as follows: on the basis of historical data, IK Trend estimates the price speed change, at the moment of which the number of false signals will be minimized. False is considered a signal when the recommendation to close the transaction lasts only 1 candle. This calculated speed is considered basic and any trend change with a speed above the base value is considered to be its beginning. According to the strategy, stop-loss is set higher or lower (depending on the direction of the position) of the last maximum (minimum) with the addition of the spread.

Also, the strategy additionally uses the Hooya Map indicator already familiar to you from previous reviews, built on the basis of the MA and the MACD and Stochastic oscillators.

Trading Terms:

  • timeframe – M15;
  • asset – EUR / USD;
  • IK Trend (version 01_2): PeriodMA = 3 (moving period), History = 200 (the number of candles to be analyzed), VerExt = 10 (the last candles for calculating the distance of the stop loss).
  • Hooya Map: MacdFast, MacdSig and StockK = 5, MacdSlow = 34, StochS and StochD = 3. The remaining parameters are set to “0”.

Conditions for opening a long position:

  • positions are opened only in the time interval from 8 to 11 EET;
  • The IK Trend green line showed a level of 0.5;
  • on the same or the next bar (candle), a blue line appears above zero, that is, pointing upwards;
  • on the same or next bar (candle) Hooya Map draws three green dots.

At the next candle after all these conditions, you can enter the market. Stop set at a distance of 10-15 points. After a profit of 10 points is obtained, we transfer the stop to the breakeven level and fix 50% of the income. We insure the remainder by trailing.

Conditions for opening a short position:

  • positions are opened only in the time interval from 8 to 11 EET;
  • IK Trend green line showed a level of -0.5;
  • on the same or next bar (candle) a blue line appears below zero, i.e. downward;
  • on the same or next bar (candle) Hooya Map draws three red dots.

If, with an open deal, the green line of IK Trend returns to level “0”, then it makes sense to close the deal early. Trade is only on the first signal. Although, if the Forex trend indicator did not bring the target profit, then you can risk opening a trade using the second signal.

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