Trend Analyser Trading Signal

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Ashish Kyal Trading Gurukul custom indicator to analyze trend, use as a trading signal and also assist if you want to do Elliott wave counting.

This indicator has to be applied on two timeframes. For swing trading it can be applied on Daily and Hourly charts. For Intraday or scalping trading this indicator needs to be applied on Hourly and 15 minutes chart.

This indicator can also be used as a direct trading signal. It can be used to identify primary, intermediate and minor trends.

Elliott wave counting becomes easy by understanding deviation of different lines within the indicators that highlights the strength of counter trend move.

Following explains detailed way in which the indicator can be used -
- The indicator consists of three lines. Each of them is derived using custom formula which is a combination of Stochastic on momentum of prices that helps to understand three different trend of price action. This indicator measures if the reversal momentum itself is significant for sustainable change of trend or reversal momentum is weak and temporary with no danger to ongoing trend.

- Three different parameters are used for each of the lines to provide different degree of trend analysis.
- When all the 3 lines start turning together it indicates a possible change in all the minor, intermediate and primary trend of the market.
- Blue is fastest moving line, red is slower and green is slowest moving line.
- When all the 3 lines of indicator are merged together at the 0 or -100 levels it indicates the trend is strong in that direction.
- If applied on daily time frame chart and all lines are merged together it indicates trend in that direction, now to take a trading signal one can then go to the shorter term chart and use this indicator.
- If on shorter timeframe only one of the 3 lines deviates it indicates minor pullback but the primary trend is unchanged. This is an opportunity to enter the market once price action confirms.
- Combination of Price action along with above indicator is must to derive the trades.
- Stoploss and targets are decided by price action method and entry levels can be identified using the trendanalyser indicator.
- For Elliott wave counts the deviation of one of the three signal lines indicate minor change in wave counts, when all 3 lines deviate together it indicates a bigger wave pattern is getting completed. This way it can assist in Elliott wave counting and pattern recognition as well.