About the Trend Filter Indicator
The Trend Filter indicator for MT4 delivers trend-following signals using a filtered moving average displayed in a separate chart window.
It draws a colored line to indicate market direction: green for bullish trends, red for bearish trends, and yellow for range-bound or flat markets.
This visual system makes it easy for traders to identify trends quickly and decide whether to enter, hold, or wait.
The default moving average period is set to 9, but it can be adjusted to match your preferred trading style or the volatility of different currency pairs.
Traders can use it alone to follow trend direction or combine it with support/resistance levels or momentum indicators for confirmation.
By filtering noise from price movements, the indicator helps traders focus on stronger trend signals and make informed decisions with confidence.
Free Download
Download the “trend-filter.mq4” MT4 indicator
Key Features
- The colored trend line shows bullish, bearish, or neutral market conditions.
- Adjustable moving average period to suit different strategies.
- Signals appear directly in a separate MT4 window for clarity.
- Easy to interpret and trade trend signals without complex setups.
Indicator Chart
The chart displays the Trend Filter indicator on the EUR/USD 1-hour timeframe.
Green lines indicate buy signals, red lines indicate sell signals, and yellow lines signal a flat or range-bound market.
Traders can follow the trend direction visually and determine the best time to enter, hold, or exit positions.
Guide to Trade with Trend Filter
Buy Rules
- Open a buy trade when the indicator draws a green line.
- Confirm upward momentum on the active timeframe.
- Enter trades only if price is above recent support levels.
Sell Rules
- Open a sell trade when the indicator draws a red line.
- Confirm downward momentum on the active timeframe.
- Enter trades only if price is below recent resistance levels.
Stop Loss
- Set stop loss at the nearest swing low for buy trades.
- Set stop loss at the nearest swing high for sell trades.
- Optionally, use the Average True Range (ATR) to set a dynamic stop loss.
Take Profit
- Close buy trades when a red line appears.
- Close sell trades when a green line appears.
- Alternatively, target nearby support or resistance levels for partial or full exits.
Trend Filter and Kijun Candles Forex Trend Strategy
This MT4 forex strategy combines the direction filter from the Trend Filter MT4 Forex Indicator with price action clarity from the Kijun Candles Trend Indicator MT4.
It is designed to help traders of all experience levels identify trend direction and enter trades with better timing.
This approach works on M5, M15, and H1 charts, which are suitable for day trading and intraday moves.
The Trend Filter indicator displays a green line for buy signals and a red line for sell signals.
The Kijun Candles Trend Indicator paints blue candles in a buy trend and red candles in a sell trend.
By combining these two indicators, this strategy focuses on entering trades that are supported by both trend confirmation and candle-based momentum.
This increases the likelihood of capturing significant price moves while avoiding entries against the primary direction.
Buy Entry Rules
- Wait for the Trend Filter line to turn green, indicating a buy signal.
- Confirm the trend with blue candles from the Kijun Candles Trend Indicator.
- Enter a buy trade at the close of the first blue candle after the Trend Filter line turns green.
- Place the stop loss below the most recent swing low or below the nearest support level.
- Set the take profit at a nearby resistance level or manage trade manually as the trend continues.
- Close the trade immediately if the Trend Filter line turns red or if red candles appear consecutively on the Kijun Candles Indicator.
Sell Entry Rules
- Wait for the Trend Filter line to turn red, indicating a sell signal.
- Confirm the trend with red candles from the Kijun Candles Trend Indicator.
- Enter a sell trade at the close of the first red candle after the Trend Filter line turns red.
- Place the stop loss above the most recent swing high or above the nearest resistance level.
- Set the take profit at a nearby support level or manage trade manually as price moves down.
- Close the trade immediately if the Trend Filter line turns green or if blue candles appear consecutively on the Kijun Candles Indicator.
Advantages
- Combines direction confirmation with candle-based trend strength for better trade signals.
- Signals are easy to follow, making the strategy suitable for both beginners and experienced traders.
- Helps avoid entries against the trend by requiring confirmation from both indicators.
- Works well on multiple timeframes such as M5, M15, and H1 for flexible trading styles.
- Applicable to many currency pairs, allowing traders to find opportunities across markets.
Drawbacks
- Requires patience to wait for both indicator confirmation before taking trades.
- Late trend confirmation can lead to entering trades after initial strong moves.
- Overtrading may occur if filters are not strictly followed in choppy markets.
Case Study 1
On USDCHF M5 during the London session, the Trend Filter line turned green, indicating a bullish trend.
Shortly after, the Kijun Candles Trend Indicator displayed a series of blue candles confirming momentum.
A buy trade was opened and later closed for 14 pips when red candles started appearing consecutively and the Trend Filter line turned red.
Case Study 2
On AUDJPY H1 during the Asian session, the Trend Filter line turned red, signaling a bearish environment.
The Kijun Candles Trend Indicator confirmed the downtrend with consistent red candles.
A sell trade was executed and later concluded for 47 pips when the Trend Filter line switched to green and blue candles began forming.
Strategy Tips
- Always ensure both the Trend Filter and Kijun Candles agree before entering a trade.
- Use M5 for quick intraday entries, M15 for balanced setups, and H1 for larger moves.
- Avoid trading around major news events to reduce the chance of false signals.
- Set stop losses near recent swing highs or lows to protect against sudden reversals.
- Consider taking partial profits near key support or resistance levels to manage risk.
- Monitor trend continuity and close trades early if momentum weakens.
- Keep a trading log to observe which pairs and timeframes work best for this strategy.
- Be patient and wait for both trend confirmation and candle confirmation before acting.
Download Now
Download the “trend-filter.mq4” Metatrader 4 indicator
FAQ
What do the yellow Trend Filter lines mean?
Yellow lines indicate a range-bound or flat market. Traders should hold existing positions and avoid opening new trades until a green or red line appears.
Can the MA period be adjusted?
Yes, the default MA period is 9, but it can be increased for smoother trend signals or decreased for faster responsiveness.
Can Trend Filter be combined with other indicators?
Yes, pairing it with support/resistance levels, RSI, or moving averages can improve signal accuracy and help filter false entries.
Summary
Trend Filter provides filtered trend signals with a clear, color-coded system that simplifies trade decisions.
Its adjustable moving average period allows customization for scalping, day, or swing strategies.
The indicator can be used alone or combined with other confirmation tools.
By filtering out market noise, Trend Filter helps traders focus on stronger trend signals, improving timing, risk management, and confidence in their trades.
