Slope direction line indicator mt4 is a technical indicator to identify the trend reversal and trend direction. The slope direction line is based on the concept that moving the average line changes its slope according to the price action.
The Slope direction line indicator
The slope direction line displays a modified moving average curve on the chart. The slope line curve is shown in the form of a colored curve. The angle is smooth and responsive to the price action. It changes its color according to the trend in the following manner
- The blue curve shows a bullish trend
- The red curve shows a bearish trend
Also learn about the Zig Zag indicator
How to use the Slope Direction Line Indicator?
You can modify the parameters of the slope direction line indicator to pinch its sensitivity. There are the following methods to twerk its effectiveness.
- “Period” refers to the number of periods on which the modified moving average line is based.
- “MA method” refers to the type of modified moving average line used.
- “Applied price” refers to the source of the price data on each bar
Slope Direction Line can also be employed as a trend filter, where traders only trade in the direction shown through Slope Direction Line.
It could also be utilized to create a trend reversal signal, where traders use the changing colors of the lines to determine the basis for opening trading and shutting trades. It is recommended to utilize this signal to reversal trend when combined with other indications of trend reversal or patterns
Trading with slope direction line
The slope direction indicator is perfect for determining suitable moments for opening and profitable closing positions.
Start to buy trade
The exit of buy trade
when Slope Direction Line changes to red, Close the trade.
Start of sell trade
Open a sell order as soon as the price reverse in a resistance zone and the Slope direction line changes to red. Set the stop loss above the resistance level.
The exit of exit trade
Close the trade when the Slope Direction Line changes to blue.
The slope direction line is an element of trading techniques. It secures your trade by revealing the expecting trend reversals. It is helpful for all traders and works in multiple time frames.
Download your free slope direction line indicator MT4 here.Download indicator