In trading, technical analysis plays an important part. It is used to evaluate and predict the future price movement of a market by interpreting the patterns, trends, and volume that can be seen in a chart.
A trendline indicator is a simple yet very effective technical indicator in trading.
Traders use trendlines to assess an asset or security behavior and make profitable trading decisions.
They also look at the data behind a past trend behavior of a market to identify the factors that contribute to that movement.
When the historical data has been studied, it will be easier to identify significant movement in the current chart that resembles what has happened before. The same behavior will more likely happen again.
Trends can be upward, downtrend, and horizontal. An uptrend happens when prices continuously rise and the overall market direction is upwards. It implies a bullish trend.
A downtrend happens when prices fall for a period of time and implies a bearish trend.
A horizontal trend or sideways trend happens when supply and demand are equal.
These trends are driven by market sentiment.
Technical indicators such as trend lines are used in a charting platform to visualize the market activity. This makes it easier for traders to find the most profitable trading opportunities.
WHAT ARE THE BEST TREND LINE INDICATORS FOR MT4 METATRADER?
MetaTrader is one of the most popular trading platforms due to its powerful features. It is widely offered by trustworthy brokers which is why traders do not have to worry about this software.
MetaTrader 4 or MT4 is the first version of the MetaTrader platform which is designed for Forex and futures markets. What traders love about it is that it can be used by anyone regardless of skill level. Automated trading is also available in MT4, allowing traders to place trades faster and easier.
But what traders most likely like about MT4 is its technical analysis capability. It has 30 built-in indicators and 24 graphical objects which can be viewed in 9 timeframes.
Using these tools gives a detailed view of the price dynamics which helps traders analyze the market better and find the best entry and exit points of a trade.
MT4 also has its own programming language called MQL4 which lets traders create their own trading indicators and trading robots. Alternatively, you may access the MetaTrader Market in the MT4 or MT5 platform to browse and purchase indicators or trading robots to your liking.
MT4 MetaTrader Trend Lines Indicators
Indicators in MT4 are classified into two categories: Trend and oscillators. Below are the best trend line indicators that you can use in the platform:
- Average Directional Index (ADX)
- Alligator Indicator
- Zig Zag Indicator
- Moving Average Convergence Divergence (MACD)
- Bollinger Bands
- Moving Average Indicator
- Parabolic Stop and Reverse Indicator
- Envelopes Indicator
- Standard Deviation
- Ichimoku Kinko Hyo
These are only some of the most popular trendline indicators that you can use in MT4, but you may also download custom indicators that will fit with your strategy.
You may also combine these with other indicators to enhance your chart analysis.
WHAT ARE THE BEST TRENDLINES INDICATORS FOR MT5 METATRADER?
MetaTrader 5 or MT5 is the newest version of the MetaTrader trading platform. It is designed to trade in the Forex, futures, and stock markets.
It has an upgraded technical analysis capability with the addition of Depth of Market which allows traders to view the volume behind a market.
There are already 38 built-in technical indicators and 44 analytical objects which can all be viewed in 21 timeframes. Traders also have two additional order types, Buy Stop Limit and Sell Stop Limit.
MT5 uses a new programming language called MQL5. Nothing much has changed from MQL4 but indicators and other tools from MQL4 should be converted to MQL5 if the trader wants to use MT5.
However, coding is much easier to do in MT5 so anyone can create their indicators with little difficulty.
MT5 MetaTrader Technical Indicators
Most of the trendline indicators in MT4 can already be found in MT5 such as ADX, Bollinger Bands, Moving Average, and Parabolic SAR. However, there are also additional trend indicators that can be used by MT5 users:
- Adaptive Moving Average
- ADX Wilder
- Double Exponential Moving Average
- Fractal Adaptive Moving Average
- Triple Exponential Moving Average
- Variable Index Dynamic Average
WHAT ARE THE BEST AUTO TRENDLINE INDICATORS FOR TRADINGVIEW?
TradingView is another platform that trades in the stock, futures, and Forex markets. Many traders also love this platform as it offers a lot of features and tools that make trading more rewarding.
If you are interested in using TradingView, you have the option to get a free (Basic) plan or any of the 3 paid plans (Pro, Pro+, Premium).
The Basic plan allows a trader to experience the features that the paid plans have but only with limited functionality. This plan option is best for new traders to get a better understanding and to practice. If you are ready to experience more, then getting a paid plan would be a great investment.
TradingView also comes with 100+ built-in indicators, 100,000 community indicators, 50 drawing tools, and comprehensive stock screening tools. It also has its own programming language called Pine Script which enables traders to write and share their own indicators and strategies to the TradingView community.
Indicators in TradingView are divided into two categories: Built-ins and Public Library. Built-ins contain 100+ indicators for moving averages, oscillators, and price channels that are provided by TradingView. Public Library indicators are indicators which are shared by other TradingView users.
Some of the best TradingView trend indicators are:
- Simple Moving Average (SMA)
- Bollinger Bands
- Ichimoku Kinko Hyo
- Stochastic Indicator
- Supertrend Indicator
- Average True Range
WHAT ARE THE BEST TREND INDICATORS FOR NINJATRADER?
NinjaTrader is a trading platform and broker for futures and Forex markets.
It is also one of the most popular platforms for active traders that offers low minimum account balance at $400.
NinjaTrader has powerful charting and analysis tools that are beneficial for every trader. Its free version offers a great first step for new traders who are still learning the industry. Once they are ready for more complex experiences, they can upgrade to the paid version.
NinjaTrader has its own vendor program for indicators, apps, add-ons, and strategies called Ecosystem. This is where users can use third-party tools to enhance their trading. Here are some of the best NinjaTrader trendlines indicators:
- Trend Pullback Reversal Indicator
- Ichimoku Cloud
- Elder Ray Indicator
- Alligator Indicator
- Elliot Wave Indicator
AUTOMATIC TRENDLINE INDICATORS
An automatic trendline indicator is an indicator which identifies current uptrend and downtrend lines and automatically draws them on the chart.
This is the perfect indicator for beginners and traders who are regularly using trends. It can also be applied in different markets and timeframes. Here are some examples of automatic trendline indicators for different trading platforms:
MetaTrader 4 – Auto Trendline Indicator MT4 Automatic Trendline Indicator
MetaTrader 5 – Automatic Trendline Indicator Automatic Trendlines
TradingView – Auto Trendlines Autotrendline
NinjaTrader – Automatic Trend Line Automatic Trend Line Detection
HOW DO YOU USE A TREND LINE INDICATOR?
A trendline indicator is important in technical analysis which is why you should know how to derive information from it.
It highlights and confirms existing trends or price ranges. Trendlines connect two price points in a chart and shows whether there is an uptrend or downtrend.
If the trendline indicator has drawn the lines in the chart, you may now use it to complement your trading strategy. Since a trendline defines support and resistance levels, you can identify whether there is going to be a possible breakout or reversal. A breakout is when an asset’s price breaks through a level while a reversal is when an asset’s price bounces from a level.
When it comes to a breakout, identify a bearish trend, wait for a trendline breakout, and then buy. The same goes for the opposite. It is time to sell when a breakout happens in a bullish trend.
In reversal trading strategy, when a trendline bounce occurs in a bearish trend, it depicts a sell signal. The opposite happens when a trendline bounce occurs in a bullish trend.