Trend Direction Force Index Forex Indicator MT4 Free Download

The Trend Direction Force Index Indicator for MT4, in essence, is a forex oscillator fluctuating between -1 and + 1 absolute levels – what’s more, it’s available to free download. The indicator’s formula uses a combination of price movement and volume to evaluate the force behind these price movements and to recognize potential changes in the trend direction.

Sounds interesting? Let’s look at it and bring some practical forex trading examples.

Introducing the Trend Direction Force Index Indicator

MT4 Indicator Overview

The download link of the Trend Direction Force Index MT4 indicator is placed at the end of this post. Once you’re done, your mt4 trading chart should look similar to the example below.

Its signals are displayed in a separate window below the main trading chart. Forex traders should consider three zones provided by the indicator. When it tilts towards the upside to the positive zone, and the oscillator aims to reach the value of 1 – a bullish trend direction takes place. On the contrary, the oscillator leaning toward the negative zone of value -1 suggests an ongoing bullish direction of the trend.

Additionally, it can show a neutral zone with no significant bull or bear trend force. Therefore the market has no distinct direction. This is an excellent quality, as knowing when not to trade equally crucial to becoming profitable in forex trading.

Formula for the Trend Direction Force Index Indicator

Its formula is based on the following calculation:

Force Index (number of periods) = [Close (current period) – Close (prior period)] x Volume

In our case, the default period is set to 20.

Trading rules for the Trend Direction Force Index Indicator

Generally speaking, the entry signal trigger is based on the breakout from the neutral zone. Let’s dive into how to use that forex indicator in a few simple steps.

Trend Direction: Buy Signal

• Price forms a bullish price action pattern.
• The indicator moves outside the neutral zone to the upside
• Open long-entry trade when the above conditions are met
• Set stop loss(SL) a few pips below the most recent market’s low point
• Take profit whenever the indicator’s value moves back to the neutral zone

Trend Direction: Sell Signal

• Price forms a bearish price action pattern
• The indicator moves outside the neutral zone to the downside
• Open short entry trade when the above conditions are met
• Set stop loss(SL) a few pips above the most recent market’s high point
• Take profit whenever the indicator’s value moves back to the neutral zone

Set up the Trend Direction Force Index indicator in MetaTrader (MT4).

Installation Guide

Download the Trend Direction Force Index.rar archive at the bottom of this post, unzip it, then copy and paste the indicator Trend Direction Force Index.ex4 or Trend Direction Force Index.mq4 indicator files into the MQL4 Data folder of the MetaTrader 4 trading platform.

You can gain access to this data folder by clicking the top mt4 menu options, which goes as follows:

File > Open Folder > MQL4 > Indicators (paste here).

Now go to the left side of your Forex MT4 terminal. In the mt4 Navigator, find the gauge name, right-click it, and select Attach to the mt4 chart.

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Conclusion

The Trend Direction Force Index indicator is handy for forex traders needing help recognizing the trend direction properly. All they need to do is look at the signal line, whether inside or outside the neutral zone. Although it can be utilized as a standalone trading tool, it is an excellent addition to any forex strategy as a filter for deciding the direction of entries.

Download Free Trend Direction Force Index MT4 Forex Indicator