The perfect trend line MT4 indicator is an accurate buy/sell forex trading indicator that is based on the most powerful trend lines.
The indicator is very easy to use; in fact, you don’t need to draw any trend lines at all on the chart.
The perfect trend line indicator does all the hard work for you and translates every calculation into an easy-to-follow buy and sell signal.
- A green dot below the candlestick represents a buy signal.
- A violet dot above the candlestick represents a sell signal.
For buy signals, it’s recommended to place a stop-loss below the violet dotted rising support line.
For sell signals, place a stop-loss above the violet dotted falling resistance line.
Feel free to experiment with the different indicator’s inputs settings to suit your needs and preferences.
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Download the “perfect-trend-line-indicator.ex4” MT4 indicator
Indicator Chart (EUR/USD H1)
The EUR/USD 1-Hour chart below displays the Perfect Trend Line Metatrader 4 forex indicator in action.
Basic Trading Signals
Signals from the Perfect Trend Line MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Open a buy trade when a green dot below the candlestick appears on the chart.
Place a stop loss below support or use your own preferred SL method.
Sell Signal: Open a sell trade when a violet dot above the candlestick appears on the chart.
Place a stop loss above resistance or use your own preferred SL method.
Perfect Trendline + SIBBET Demand Index Divergence MT4 Day-Trading Strategy
This MT4 day-trading strategy combines the trend-direction clarity of the Perfect Trend Line indicator with the strength and exhaustion signals from the SIBBET Demand Index Divergence Indicator.
The Perfect Trendline draws green dots for bullish trend points and violet dots for bearish trend points, helping you identify when the market’s trend structure is favorable.
The SIBBET Demand Index Divergence indicator plots a histogram: green bars suggest increasing buying demand (buy potential), while red bars point to growing selling pressure (sell potential).
By combining a reliable trend filter with a divergence-based momentum indicator, this strategy helps you catch intraday reversals or continuation moves with good probability.
It’s intended for day traders working on M15 or M30 charts, using pairs that offer reasonable volatility during major sessions (like EUR/USD, GBP/JPY, AUD/USD).
Because divergence often precedes turning points or trend accelerations, the Demand Index helps you time entries more precisely.
Buy Entry Rules
- The Perfect Trendline plots a green dot indicating a bullish trend change or confirmation.
- The SIBBET Demand Index Divergence histogram shows a green bar or rising green bars, signaling increasing buying demand.
- Enter a long (buy) trade when both conditions are present on the same or closely aligned candles.
- Set your stop loss just below a recent swing low or below the candle that formed the green trend dot.
- Take profit once the Demand Index histogram begins to turn down (green bars shrinking) or reverses color to red.
Sell Entry Rules
- The Perfect Trendline plots a violet dot indicating a bearish trend change or confirmation.
- The SIBBET Demand Index Divergence histogram shows a red bar or strengthening red bars, signaling increasing selling pressure.
- Enter a short (sell) trade when both conditions align on the same or consecutive candles.
- Place the stop loss just above a recent swing high or above the candle that produced the violet dot.
- Take profit when the Demand Index histogram starts to fade (red bars shrinking) or flips to green, indicating waning selling pressure or a possible shift in demand.
Advantages
- Uses a clear trend-filter: only trade in the direction suggested by Perfect Trendline dots.
- Divergence-based entries help catch turning points and avoid late entries.
- The Demand Index is more sensitive to underlying buying/selling pressure than price alone, giving early warning.
- Dynamic take-profit based on histogram behavior helps lock in gains without fixed pip targets.
- Well-suited for intraday trading: low to medium risk, controlled stops, and good risk/reward opportunities.
Drawbacks
- Missed signals: trend dots and divergence may not always align, reducing the number of trades.
- False divergences: sometimes the Demand Index shows divergence, but the price continues strongly in the trend.
- Lags on fast moves: the trend dot may appear slightly late after a strong breakout, meaning entry might not be optimal.
- Stop loss may be relatively wide if swing points are distant, depending on the pair and the timeframe.
- Requires careful monitoring: watching the histogram shape and trend dots means more active management.
Example Case Study 1: EUR/USD M15 During London Session
During a London-session swing, EUR/USD on the M15 chart showed a green Perfect Trendline dot at 1.1030, signaling a shift to bullish direction.
Shortly afterward, the SIBBET Demand Index histogram produced rising green bars, indicating growing buying momentum.
Based on these two signals, a long trade was entered at 1.1035.
The stop loss was placed just below the recent swing low at 1.1018.
As the price climbed, the Demand Index green bars reached a peak, then began to shrink.
When the histogram reversed color to red, the trader closed the position around 1.1058, locking in a sensible intraday profit without overextending.
Example Case Study 2: GBP/JPY M30 Reversal Move
On GBP/JPY in a 30-minute timeframe, a violet dot from the Perfect Trendline appeared at 153.25 as the pair recovered near a resistance area.
Right after, the SIBBET Demand Index showed strong red bars, signaling selling pressure. The trader initiated a short at 153.20.
A stop loss was set just above the swing high at 153.50.
As the price moved downward, the red bars intensified, then gradually diminished.
When the histogram flipped back to green, the trade was closed at 152.85, capturing a clean intraday reversal.
Strategy Tips
- Stick to M15 or M30 timeframes: they allow a balance between signal clarity and frequent opportunities.
- Avoid trading during major news announcements unless you’re very confident; divergence signals may behave unpredictably.
- Use proper money management: risk only a small percentage per trade, as not every divergence will play out fully.
- Watch the histogram shape carefully: don’t just trade a green bar, but wait for the trend of bars (rising or fading) to make your exit decision.
- Backtest the strategy on your preferred currency pairs to validate how often trend dots + divergence align and how reliable your profit-taking rule is.
Download Now
Download the “perfect-trend-line-indicator.ex4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (time frame, slow length, slow pip displace, fast length, fast pip displace) Width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, Daily, Weekly, Monthly
Type: trend
