Trend test indicator
is a powerful VerterFX client-side indicator that provides us precise Buy and
Sell signals based upon trend-following techniques. The indicator employs
long-term (200 bars) trend-following mechanism. It consists of 16 bars which
are marked as bullish (Green), bearish (Red) and neutral (Gray). The leftmost
bar represents the older trend, and the rightmost bar represents the more
recent trend.
Each bar is
calculated by comparing the 200-period Exponential Moving Average (EMA) against
the 200-period Exponential Moving Average (EMA) two bars ago. We avoid
comparison with the immediate previous bar to eliminate spikes and whipsaws.
When the current 200-period EMA is above the
200-period EMA two bars ago, that particular bar is marked as bullish (Green).
Similarly, when the current 200-period EMA is below the 200-period EMA of two
bars ago that particular bar is marked bearish (Red). If the EMAs are equal, or
not available, the bar is marked as (Gray).
In an uptrend, as the
price rises, the EMA also rises steadily. As soon as the latest two
indicator bars turn Green from Red, it confirms that uptrend is strong.
Similarly, in a downtrend as the price falls, the EMA also falls steadily. As
soon as the latest two indicator bars turn Red from Geen, it confirms that the
downtrend is strong.
BUY Place Buy trade
when recent two indicator bars have turned Green, and at least five previous
indicator bars are Red. Do not open Buy trade if candle has gap-up opening.
Place stop-loss below the nearest Swing Low level.
SELL Place Sell trade
when recent two indicator bars have turned Red, and at least five previous
indicator bars are Green. Do not open Sell trade if candle has gap-down
opening. Place stop-loss above the nearest Swing High level.
To use Trend test indicator
download it from here, then place it at VertexFX VTL directory:
C:\ProgramData\VertexFX
Client Terminals\"Company name"\VTL10\Local VTL Scripts
Then right click on
the tree and select refresh or restart your client station and you will find
under VTL local scripts in your client
terminal.
You can check this
video that talks about Trend test indicator: