Halftrend is one of my favorite Forex indicators. In general it shows the direction of the trend – blue line means the trend is going up, red line shows that the trend is moving down. And it gives an arrow alert when the trend changes. There are also other ways how to use HalfTrend.
One way is to use several HalfTrend indicators with different amplitudes on the same chart. Indicator with larger amplitude (with value 5-10) catches the bigger trend and is less sensitive to small price fluctuations. And the lower amplitude Halftrend may be used as an entry signal to make a trade. See example in the picture below. It’s a chart with two Halftrend indicators: with amplitude 1 and 5. If you want to trade following the big upward trend, you may use blue arrows of the lower amplitude indicator to enter buy trades.
Halftrend may also indicate support and resistance lines (see image below) or can be used as a stop-loss level.
Another great feature is that this indicator never repaints after the candle is closed.
But keep in mind that HalfTrend works best in a trending market and may be less useful in the ranging market. So you may use other indicators or set-ups to avoid false signals.
Features of HalfTrend indicator
- Platform: Metatrader 4
- Timeframe: any from 1 Minute to Daily
- Currency pairs: any
In HalfTrend-1.02.zip file you will find:
Download HalfTrend 1.02 indicator for free: