The Forex Trend Filter indicator for mt4 (Metatrader 4) can be categorized as a trend indicator that uses a digital filter for better trend prediction.
The indicator pops up in a separate MT4 chart window as a colored red/blue trend histogram.
Buying and selling with this indicator is really easy and fits beginners and seasoned traders alike.
Buy & Sell Trade Example
- Initiate a buy trade as soon as the first blue colored bar gets displayed on the chart.
- Initiate a sell trade as soon as the first red colored bar gets displayed on the chart.
- Close and reverse the trade whenever the bar changes its color.
The Forex Trend Filter indicator can be used for both trade entry and exit, or as an additional confirmation filter for other strategies and systems.
The indicator works equally well on all currency pairs (majors, minors and exotic) and shows promising results if used correctly.
Free Download
Download the “Filter.ex4” indicator for MT4
Indicator Chart (EUR/USD Daily)
The example chart below displays the Forex Trend Filter mt4 indicator in action on the trading chart.
Tips:
Feel free to use your own favorite trade entry, stop loss and take profit strategy to trade with the Forex Trend Filter indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Trend filter
Does the indicator repaint? No.
Forex Trend Filter + Tether Line Day Trading Strategy for MT4
This day trading strategy combines the Forex Trend Filter Indicator with the Tether Line Forex Signals Indicator for MT4.
It is designed for traders who want clear color-coded signals to enter and exit positions on H1 or H4 timeframes.
The Forex Trend Filter identifies the dominant trend with blue and red bars, while the Tether Line Indicator confirms trades with its red or blue signal line.
Together, they provide a straightforward way to capture intraday swings with defined entry and exit points.
Buy Entry Rules
- Wait for the first blue bar to appear on the Forex Trend Filter Indicator.
- Confirm that the Tether Line Indicator is displaying a red signal line (buy confirmation).
- Enter a buy trade at the next candle open after both conditions are met.
- Place a stop loss just below the most recent swing low or 25–35 pips on H1.
- Take profit when the Forex Trend Filter bar changes from blue to red or at a fixed pip target, such as 50–70 pips on H1.
Sell Entry Rules
- Wait for the first red bar to appear on the Forex Trend Filter Indicator.
- Confirm that the Tether Line Indicator is displaying a blue signal line (sell confirmation).
- Enter a sell trade at the next candle open after both conditions are met.
- Place a stop loss just above the most recent swing high or 25–35 pips on H1.
- Take profit when the Forex Trend Filter bar changes from red to blue or at a fixed pip target, such as 50–70 pips on H1.
Advantages
- Clear, color-coded signals make decision-making easier.
- Combines trend identification with signal confirmation for higher accuracy.
- Works well on H1 and H4 charts for day trading setups.
- Can be adapted for swing trading with larger stops and targets.
Drawbacks
- False signals may occur during news events or sideways markets.
- Requires discipline to wait for both indicators to align before entering trades.
- Longer timeframes mean fewer but more significant setups.
Case Study 1 – EUR/USD H1
On the EUR/USD H1 chart, the Forex Trend Filter printed its first blue bar at 1.0740 while the Tether Line showed a red signal line.
A buy trade was opened at 1.0745 with a stop loss at 1.0715 and a take profit at 1.0810 when the Trend Filter bar changed to red.
This trade delivered a 65-pip gain in about 6 hours.
Case Study 2 – GBP/JPY H4
On the GBP/JPY 4-hour chart, the Forex Trend Filter displayed its first red bar at 184.90, and the Tether Line confirmed with a blue signal line.
A sell trade was initiated at 184.80 with a stop loss at 185.40 and a take profit at 183.20.
The move captured 160 pips profit over two trading sessions.
Strategy Tips
- Focus on major currency pairs during active market hours for better results.
- Check higher timeframes like D1 to align with the broader trend before taking signals.
- Avoid trading during high-impact news events to reduce whipsaws.
- Use a trailing stop to lock in profits when the price moves strongly in your favor.
