The Magic Trend Forex indicator for Metatrader 4 deploys a trend-following trading strategy and delivers precise buy and sell signals that work out of the box.
The indicator pops up in the main MT4 chart window in the form of a colored green/red/gray signal line.
Buy & Sell Trade Example
- Enter long when the green signal line gets printed on the chart.
- Enter short when the red signal line gets printed on the chart.
The Magic Trend Forex indicator can be used for trade entry and exit or as an additional confirmation trend 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 “Magic_Trend.mq4” indicator for MT4
Indicator Chart (EUR/USD M15)
The picture below shows the Magic Trend Forex mt4 indicator in action on the trading chart.
Trading Tips:
Feel free to use your own favorite trade entry, stop loss and take profit method to trade with the Magic Trend Forex 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: Signals
Does the indicator repaint? No.
Scalping Strategy: Magic Trend & Free Forex Scalping Indicator (MT4)
This scalping strategy combines the Magic Trend Forex Indicator and the Free Forex Scalping Indicator on MetaTrader 4 (MT4).
The Magic Trend indicator identifies the trend with a green line for bullish trends and a red line for bearish trends.
The Free Forex Scalping indicator provides entry signals with a green histogram for buy signals and a red histogram for sell signals.
This strategy works best on M1 and M5 charts and is ideal for currency pairs like EUR/USD, GBP/USD, AUD/USD, NZD/USD, and USD/CHF.
Buy Entry Rules
- Wait for the Magic Trend indicator to display a green line, indicating a bullish trend.
- Confirm a green histogram on the Free Forex Scalping Indicator as a buy signal.
- Enter a buy trade at the close of the bar that meets both conditions.
- Set a stop loss below the recent swing low or a fixed pip amount (e.g., 10-15 pips).
- Set a take profit at a 1:1.5 or 1:2 risk-to-reward ratio, or exit when the Free Forex Scalping histogram turns red.
Sell Entry Rules
- Wait for the Magic Trend indicator to display a red line, indicating a bearish trend.
- Confirm a red histogram on the Free Forex Scalping Indicator as a sell signal.
- Enter a sell trade at the close of the bar that meets both conditions.
- Set a stop loss above the recent swing high or a fixed number of pips (e.g., 10-15 pips).
- Set a take profit at a 1:1.5 or 1:2 risk-to-reward ratio, or exit when the Free Forex Scalping histogram turns green.
Advantages
- Combines trend direction and precise entry signals for higher probability trades.
- Clear visual signals make it easy to scalp on fast timeframes.
- Works effectively on M1 and M5 charts for quick intraday trades.
- Suitable for highly liquid major pairs and currency crosses like AUD/USD, NZD/USD, GBP/JPY, and USD/CHF.
Drawbacks
- Requires constant monitoring and fast execution, especially on M1 charts.
- Performance may drop during major news events or sudden market spikes.
- Less effective on exotic or low-liquidity pairs.
- Scalping can be stressful for traders without quick decision-making skills.
Case Study 1: AUD/USD M1 Buy
On the AUD/USD M1 chart, the Magic Trend line turned green, and the Free Forex Scalping histogram displayed green.
A buy trade was entered at 0.6755.
Stop loss was set at 0.6745 (-10 pips) and take profit at 0.6770 (+15 pips).
The trade reached the take profit level, yielding +15 pips.
Case Study 2: NZD/USD M5 Sell
On the NZD/USD M5 chart, the Magic Trend line turned red, and the Free Forex Scalping histogram displayed red.
A sell trade was entered at 0.6280.
Stop loss was set at 0.6295 (+15 pips) and take profit at 0.6265 (-15 pips).
The trade successfully hit the take profit, resulting in +15 pips.
Strategy Tips
- Use M1 and M5 charts to capture quick scalping opportunities.
- Focus on highly liquid pairs for tighter spreads.
- Confirm trend direction with the Magic Trend indicator before entering trades.
- Wait for candle close confirmation to reduce false signals.
- Implement strict risk management, limiting trades to 1-2% of account balance.
- Consider using a trailing stop to lock in profits during favorable moves.
