About the Skdon Trend Indicator
The Skdon Trend Indicator for MT4 is a sophisticated technical tool engineered to detect the emergence of new market trends with high precision.
It operates by overlaying the price action with specialized bar formations that resemble Heiken Ashi candles, which helps in smoothing out market noise and highlighting the core directional bias.
This indicator is specifically designed to help traders enter a position at the very inception of a trend and exit safely before the momentum fully dissipates at the cycle’s end.
By functioning similarly to a reactive moving average but with advanced smoothing algorithms, it provides a clearer picture of market sentiment than standard candlestick charts.
Its ability to filter out minor price fluctuations makes it a reliable companion for those looking to build a consistent trading edge in the competitive currency markets.
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Download the “skdon-trend-indicator.ex4” MT4 indicator
Key Features
- Generates explicit entry signals through colored arrows that appear at key pivot points.
- Uses a smoothing mechanism to reduce the impact of market whipsaws and false breakouts.
- Displays color-coded candle bodies that help traders stay in winning positions for longer durations.
- Allows for early identification of trend exhaustion, facilitating timely exits before price reversals.
Indicator Chart
The chart illustrates the Skdon Trend Indicator identifying a major market shift.
A blue upward-pointing arrow marks the start of a bullish phase, accompanied by blue candle-like bodies that confirm the upward momentum.
Conversely, the red downward-pointing arrow and subsequent red bodies show a clear transition into a bearish environment, providing traders with high-probability entry and exit zones.
Guide to Trade with Skdon Trend Indicator
Buy Rules
- Monitor the chart for the appearance of a blue upward-pointing arrow from the indicator.
- Wait for the indicator to produce blue candle-like bodies following the initial arrow.
- Ensure the current candle has fully closed to validate the bullish signal.
- Confirm that the price action is not stalling at a major historical resistance level.
Sell Rules
- Monitor the chart for the appearance of a red downward-pointing arrow from the indicator.
- Wait for the indicator to produce red candle-like bodies following the initial arrow.
- Check that the candle has closed with the red signal still firmly in place.
- Verify that the market is not currently sitting on a significant support floor.
Stop Loss
- Place the protective stop loss a few pips below the most recent swing low for buy trades.
- Position the stop loss order just above the most recent swing high when selling.
- Consider trailing the stop loss behind the indicator’s candle bodies as the trend progresses.
Take Profit
- Close all active buy orders immediately when the indicator prints a red downward-pointing arrow.
- Close all active sell orders immediately when the indicator displays a blue upward-pointing arrow.
- Alternatively, target a fixed risk-to-reward ratio of 1:2 to secure gains during volatile moves.
SKDon Trend + CCI Colored Buy Sell MT4 Forex Strategy
This strategy combines the SKDon Trend MT4 Forex Indicator and the CCI Colored Buy Sell Trend MT4 Forex Indicator.
SKDon Trend shows trend direction with arrows: a blue arrow signals a bullish trend, and a red arrow signals a bearish trend.
The CCI Colored indicator shows momentum: a blue histogram above zero indicates bullish momentum and a red histogram below zero indicates bearish momentum.
Using both together ensures you only enter trades when trend direction and momentum align.
This strategy works best on M5, M15, and H1 timeframes and is ideal for liquid forex pairs with good volatility.
Buy Entry Rules
- Wait for SKDon Trend to show a blue arrow (bullish trend signal).
- Confirm that the CCI Colored histogram is blue and above zero (bullish momentum).
- Enter a long position at the close of the candle where both signals appear.
- Place a stop loss a few pips below the recent swing low or nearby support.
- Take profit when the price reaches the next meaningful resistance level, the CCI histogram turns red, or SKDon Trend shows a red arrow, whichever happens first.
Sell Entry Rules
- Wait for SKDon Trend to show a red arrow (bearish trend signal).
- Confirm that the CCI Colored histogram is red and below zero (bearish momentum).
- Enter a short position at the close of the candle where both signals appear.
- Place a stop loss a few pips above the recent swing high or nearby resistance.
- Take profit when the price reaches the next meaningful support level, the CCI histogram turns blue, or SKDon Trend shows a blue arrow, whichever occurs first.
Advantages
- Trades only when trend and momentum agree, reducing false signals.
- Adaptable across multiple intraday timeframes (M5, M15, H1).
- Take-profit based on price structure or momentum fade allows adaptation to real market conditions.
- Clear entry and exit conditions simplify trade management.
- Easy to interpret using only two indicators and clear blue/red signals.
Drawbacks
- Requires active monitoring for momentum fade or trend reversals.
- Patience is required because trades only occur when trend and momentum align.
Case Study 1: EURUSD on M15
During the European session, SKDon Trend turned blue, and the CCI Colored histogram turned blue above zero.
Price was near a swing low at 1.1060.
A long trade was entered at 1.1062, with a stop loss at 1.1045.
The take profit was set at 1.1105, but the price closed at 1.1103 when the histogram turned red.
The trade gained 41 pips.
Case Study 2: GBPUSD on H1
On the H1 chart, SKDon Trend showed a red arrow, and the CCI Colored histogram dropped below zero and turned red.
Price retraced near resistance at 1.2240.
A short trade was opened at 1.2238, stop loss at 1.2265, take profit near support at 1.2178.
Price moved down, and the histogram turned blue near the support. The trade gained 58 pips.
Strategy Tips
- Confirm signals with higher timeframe trends to avoid counter-trend trades. For example, check the H1 trend if trading M15.
- Combine with simple price action patterns such as pin bars or engulfing candles for better entry timing.
- Adjust stop loss and take profit based on the volatility of each currency pair. Higher volatility pairs may require wider stops and targets.
- Use a small lot size for early trades while testing the strategy to learn how signals behave under live conditions.
- Consider using a trailing stop once the trade moves in your favor to lock in profits while allowing the trend to continue.
- Check multiple currency pairs for alignment. Sometimes, the same trend in correlated pairs can reinforce trade confidence.
- Review your trades daily to identify patterns of success and failure. Refine entry timing, exit rules, and timeframe selection based on your experience.
Download Now
Download the “skdon-trend-indicator.ex4” Metatrader 4 indicator
FAQ
How does the Skdon Trend Indicator handle ranging or flat markets?
While the Skdon Trend Indicator is optimized for trending environments, it uses its candle-like bodies to filter out minor volatility.
In flat markets, the indicator may produce fewer arrows than standard oscillators.
Can I customize the sensitivity of the Skdon Trend signals?
The indicator settings allow for some adjustments to how it processes price data.
By modifying the input parameters, you can make the indicator more sensitive for quick entries or more conservative to capture longer trends.
Most professionals find the default settings provide a balanced approach to risk and reward.
Summary
The Skdon Trend Indicator stands out as a reliable tool for traders who want to capitalize on momentum without getting lost in market noise.
Its intuitive design, combining arrow alerts with trend-confirming bars, provides a mechanical way to execute trades with confidence.
The indicator’s primary benefit is its focus on early detection, giving users the potential to catch the bulk of a move from the start.
While it is highly effective in trending conditions, its clear exit signals also serve as an excellent risk management tool to protect capital.
