About the Trend Strength Indicator
The Trend Strength MetaTrader 4 indicator is a trend and momentum tool built from multiple moving average calculations.
It blends simple, exponential, linear weighted, and smoothed moving averages into a single indicator that reacts quickly to recent price changes.
This combination allows it to highlight trend direction while remaining responsive during active market conditions.
Visually, the indicator resembles a MACD-style layout but with enhanced sensitivity.
It uses multi-colored histograms along with a signal line to reflect shifts in market momentum.
The colors help traders identify whether bullish or bearish pressure is dominant without overloading the chart.
A zero reference line acts as the main decision level.
When histogram values remain above zero, bullish sentiment is present.
When values stay below zero, bearish pressure dominates.
This makes the Trend Strength indicator useful for both directional analysis and timing entries.
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Download the “trend-strength-indicator.ex4” MT4 indicator
Key Features
- Built from multiple moving average types.
- MACD-style histogram with faster reaction.
- Zero line used to define market bias.
- Multi-colored histograms for momentum clarity.
- Can also be used for divergence analysis.
Indicator Chart
The chart below shows the Trend Strength indicator displayed in a separate window under the price chart.
Multi-colored histograms fluctuate around the zero line, reflecting shifts in bullish and bearish pressure.
The gray signal line adds an extra layer of confirmation for trend changes.
Guide to Trade with Trend Strength Indicator
Buy Rules
- Wait for the multi-colored histograms to break above zero.
- Confirm the histograms remain above the zero line.
- Check that momentum is expanding upward.
- Enter a buy trade after confirmation.
Sell Rules
- Wait for the multi-colored histograms to break below zero.
- Confirm the histograms remain below the zero line.
- Check that bearish momentum is increasing.
- Enter a sell trade after confirmation.
Stop Loss
- Place the stop beyond the most recent swing level.
- Keep the stop outside short-term price reactions.
- Avoid placing stops directly on the zero line.
- Adjust the stop as momentum develops.
Take Profit
- Target nearby support or resistance zones.
- Hold positions while histograms stay on the same side of zero.
- Scale out when momentum begins to slow.
- Exit when the gray line crosses the zero level.
Trend Strength + ASC Trend Forex Strategy for MT4
This strategy combines the Trend Strength MT4 Forex Indicator with the ASC Trend Forex Indicator for MT4.
The Trend Strength indicator uses a histogram: bars above zero signal bullish strength, bars below zero signal bearish strength.
The ASC Trend indicator adds arrow signals for trend direction: an aqua arrow indicates a bullish trend, while a magenta arrow signals a bearish trend.
By combining trend strength and trend direction, you get a reliable filter and clearer entry timing.
This setup works well on M5 and M15 charts and fits traders who like to blend trend and momentum for cleaner entries.
Buy Entry Rules
- The histogram on Trend Strength must be above zero (positive). This confirms bullish momentum.
- An aqua arrow must appear on the ASC Trend indicator (bullish trend signal).
- Enter long at the opening of the next candle after the arrow appears while the histogram remains positive.
- Place a stop loss a few pips below the most recent minor swing low or just below a recent support level.
- Set take profit at twice the stop-loss distance (1:2 risk/reward), or exit if the histogram dips below zero or a magenta arrow appears.
Sell Entry Rules
- The histogram on Trend Strength must be below zero (negative). This confirms bearish momentum.
- A magenta arrow must appear on ASC Trend (bearish trend signal).
- Enter short at the opening of the next candle after the arrow appears while the histogram remains negative.
- Place a stop loss a few pips above the most recent minor swing high or above a recent resistance level.
- Set take profit at twice the stop-loss distance, or exit if the histogram rises above zero or an aqua arrow appears.
Advantages
- Combines momentum and trend direction for better quality signals.
- Clear, objective entry and exit rules help avoid over-analysis.
- Suitable for a variety of currency pairs and active on multiple timeframes (M5, M15).
- Risk-to-reward ratio helps manage drawdowns and maintain consistency.
- Can catch medium-term intraday moves without requiring long-term holds.
Drawbacks
- During ranging or sideways markets, the histogram may oscillate near zero, causing false signals or whipsaws.
- Arrow signals from ASC Trend may lag after momentum changes, causing delayed entries or missed moves.
- Whipsaw conditions (quick reversals) can hit stop losses if momentum shifts suddenly.
- On low-volatility pairs or during thin market hours, signals may be weak, and the price may not reach the take profit before reversing.
Case Study 1
On EURUSD M5 during a London session, the Trend Strength histogram climbed above zero and remained positive for several candles.
An aqua arrow appeared on ASC Trend, confirming bull bias.
The trader entered long at the next candle, placing a stop loss 10 pips below a recent swing low.
Over the next ~30 minutes, EURUSD rose steadily and hit a 22-pip take profit (with 1:2 risk-reward).
The histogram stayed positive, and no magenta arrow appeared, making for a clean long scalp.
Case Study 2
On GBPUSD M15 during the start of the New York session, the Trend Strength histogram dipped below zero, indicating bearish strength.
Shortly after, a magenta arrow was printed on ASC Trend.
The trader entered a short at the next candle and placed a stop loss 14 pips above a recent swing high.
Over the following 45 minutes, GBPUSD moved downward and reached a 28-pip take profit.
The histogram remained negative, and no aqua arrow emerged, validating bearish momentum throughout the trade.
Strategy Tips
- Prefer major and liquid currency pairs like EURUSD, GBPUSD, USDJPY, or EURJPY for tighter spreads and cleaner moves.
- Trade during active sessions (London and New York) to capture stronger trends and higher volatility.
- Avoid trading when the histogram hovers near zero or changes direction frequently — wait for clear, sustained momentum.
- Use appropriate position sizing and avoid over-leveraging, especially when trading during volatile news events.
- Consider skipping trades on pairs or timeframes showing low volatility or during consolidation periods to reduce the risk of false signals.
Download Now
Download the “trend-strength-indicator.ex4” Metatrader 4 indicator
FAQ
How does the Trend Strength indicator differ from MACD?
While both use histograms and a zero line, Trend Strength relies on multiple moving average types.
This makes it more responsive to recent price changes.
What do the different histogram colors represent?
The color changes reflect variations in momentum strength.
They help traders visually track acceleration and deceleration within a trend.
Can the Trend Strength indicator show divergence?
Yes. Divergence can appear when the price makes new highs or lows while the histogram momentum weakens.
This can signal potential trend exhaustion.
Summary
The Trend Strength MT4 indicator offers a dynamic way to analyze market direction and momentum.
By combining several moving average calculations into a MACD-style format, it delivers timely insight into bullish and bearish pressure.
Its clear zero-line logic, multi-colored histograms, and flexibility across trading styles make it a practical tool for traders who want a deeper view of trend behavior without chart clutter.
