About the Ehlers iTrend Indicator
The Ehlers iTrend Indicator for MT4 is a powerful tool designed to help traders confirm market trends and identify potential trading opportunities.
The indicator uses a specialized line to reflect trend direction and momentum, helping traders align trades with the prevailing market conditions.
Displayed in the main MT4 chart window, the iTrend line changes direction in response to price movements, making it easier to see whether the market is trending upwards or downwards.
By using this trend confirmation tool, traders can reduce exposure to counter-trend trades and improve timing for entries and exits.
Ehlers iTrend works well across all currency pairs, as well as CFD stocks, indices, cryptocurrencies, and commodities.
Its adaptive nature makes it suitable for multiple timeframes and trading strategies, whether for scalping, day trading, or swing trading.
Free Download
Download the “ehlers-itrend-indicator.mq4” indicator for MT4
Key Features
- Trend confirmation using the orange iTrend line
- Displays trend direction clearly in the main MT4 window
- Suitable for all currency pairs and a wide range of assets
- Works across multiple timeframes and trading styles
- Helps traders avoid counter-trend entries
- Supports both trade entry and exit decisions
Indicator Chart
The chart below demonstrates the Ehlers iTrend Indicator.
The iTrend line provides a visual representation of trend direction and strength, guiding traders on when to enter or exit positions.
When the orange iTrend line is moving upward, it indicates a bullish trend and potential buying opportunities.
Conversely, when the orange line is declining, it signals a bearish trend and potential selling opportunities.
Traders can combine this information with other indicators for more reliable trade setups.
Guide to Trade with Ehlers iTrend Indicator
Buy Rules
- Enter a buy trade when the iTrend line starts to rise, showing bullish momentum
- Confirm trend alignment with a higher timeframe if possible
- Combine with support levels or other indicators for added confidence
- Hold until the iTrend line begins to flatten or turn downward
Sell Rules
- Enter a sell trade when the iTrend line starts declining, indicating bearish momentum
- Check for resistance levels or overall market trend before entry
- Use other trend or momentum indicators to validate the signal
- Maintain the position until the iTrend line begins to turn upward
Stop Loss
- Set stop loss beyond the recent swing high for sells or swing low for buys
- Adjust based on market volatility and recent price swings
- Allow sufficient room to avoid premature exits from normal fluctuations
Take Profit
- Target recent swing highs/lows or nearby support/resistance zones
- Consider partial exits near important price levels
- Use trailing stops along the trend direction to capture extended moves
Practical Tips
- Check higher timeframe trends to strengthen lower timeframe entries
- Monitor iTrend line slopes to gauge momentum and potential reversals
Scalping Strategy: Ehlers iTrend + DSL DMI Oscillator MT4
This scalping strategy combines the Ehlers iTrend Forex Indicator MT4 with the DSL DMI Oscillator MT4.
The Ehlers iTrend Indicator helps identify the current market trend, while the DSL DMI Oscillator provides signals based on the Directional Movement Index.
This strategy is best suited for short timeframes such as M1, M5, and M15, and is ideal for currency pairs with low spreads and high liquidity, like EUR/USD, GBP/USD, and USD/JPY.
Traders who prefer quick entries and exits with defined risk parameters will find this approach beneficial.
Buy Entry Rules
- Trend Confirmation: Ensure that the Ehlers iTrend Indicator line is rising, indicating an uptrend.
- Signal Confirmation: Wait for the DSL DMI Oscillator to cross above the zero line, signaling increasing bullish momentum.
- Entry Point: Enter a buy position at the close of the candle that confirms both indicators are aligned bullishly.
- Stop Loss: Place a stop loss just below the recent swing low or a few pips below the entry point, depending on your risk tolerance.
- Take Profit: Set a take profit target at a predefined number of pips, such as 5–10 pips, or use a risk-reward ratio of at least 1:2.
Sell Entry Rules
- Trend Confirmation: Ensure that the Ehlers iTrend Indicator is declining, indicating a downtrend.
- Signal Confirmation: Wait for the DSL DMI Oscillator to cross below the zero line, signaling increasing bearish momentum.
- Entry Point: Enter a sell position at the close of the candle that confirms both indicators are aligned bearishly.
- Stop Loss: Place a stop loss just above the recent swing high or a few pips above the entry point, depending on your risk tolerance.
- Take Profit: Set a take profit target at a predefined number of pips, such as 5–10 pips, or use a risk-reward ratio of at least 1:2.
Advantages
- Combines trend direction with momentum, increasing the probability of successful trades.
- Clear and straightforward entry and exit rules make it easy to follow.
- Suitable for high-frequency trading with quick entries and exits.
- Works well in trending markets with low spreads and high liquidity.
Drawbacks
- May produce false signals during periods of low volatility or choppy markets.
- Requires strict discipline to adhere to stop loss and take profit levels.
- Not suitable for all currency pairs; best used on those with low spreads and high liquidity.
- Frequent trading can lead to higher transaction costs.
Example Case Study 1 — EUR/USD M5
On a typical trading day, the EUR/USD pair was exhibiting a clear uptrend.
At 10:15 AM, the Ehlers iTrend Indicator was rising, confirming the uptrend.
Shortly after, the DSL DMI Oscillator crossed above the zero line, signaling increasing bullish momentum.
A buy position was entered at 1.2050, with a stop loss placed at 1.2045 and a take profit target of 1.2060.
The trade reached the take profit level within 10 minutes, yielding a 10-pip profit.
Example Case Study 2 — GBP/USD M1
During the London session, the GBP/USD pair was in a downtrend.
At 9:30 AM, the Ehlers iTrend Indicator orange line was declining, confirming the downtrend.
The DSL DMI Oscillator then crossed below the zero line, indicating increasing bearish momentum.
A sell position was entered at 1.3900, with a stop loss at 1.3905 and a take profit target of 1.3890.
The trade hit the take profit level within 5 minutes, securing a 10-pip profit.
Strategy Tips
- Trade during active market sessions like London and New York for increased volatility.
- Use a demo account to practice and refine your strategy before trading with real capital.
- Regularly review and adjust your strategy based on market conditions and performance.
- Maintain strict discipline with risk management to protect your capital.
Download Now
Download the “ehlers-itrend-indicator.mq4” indicator for Metatrader 4
FAQ
How does the iTrend line confirm trends?
The iTrend line reflects price momentum and direction. A rising line suggests bullish conditions, while a declining line indicates bearish trends.
Can it be used on all asset types?
Yes, it works effectively on Forex, CFD stocks, indices, cryptocurrencies, and commodities across multiple timeframes.
Is the indicator suitable for short-term and long-term trades?
Yes, it adapts to scalping, day trading, and swing trading by reflecting current trend strength and direction.
Can it be combined with other indicators?
Yes, traders often use it alongside support/resistance levels, moving averages, or oscillators to confirm trade setups and improve accuracy.
Summary
The Ehlers iTrend Indicator for MT4 is an effective tool to confirm trends and identify trading opportunities using the iTrend line.
It helps traders align with prevailing market momentum and avoid counter-trend entries.
Its flexibility across assets and timeframes makes it suitable for multiple trading styles.
