ULTRA_TREND indicator description

Trading strategy examples (by default) used with the 4H indicator.

Below you can see a strategy, which was created in minutes, but is yet very effective.

Trading tactics based on braking through the trend line with the help of ULTRA_TREND indicator.

Example 1.

In our first example trend line price breakthrough and the ULTRA_TREND matched. But we still don’t know when it will close; any trend indicator which has been set up by the previous trend will show you the earliest closure before the main peak begins. Look at how the closure is made with the current indicator – after ULTRA_TREND reaches its max. point “30”, and with minor alterations the indicators starts floating again and reaches this point again, forming an arc which are used for defining entry points. In this example we can see the first alterations from the max. point are seen through one bar, where these data is interpreted as noise and isn’t being used. As you can see, the closure has been made after the trend line breakthrough which has been set up by the level of selected arc. After opening the position we need to control the trailing stop, which is easily done by ULTRA_TREND. Trailing has to be set up according to the visual minimums and maximums, at the points where ULTRA_TREND lines cross, or when the main blue line has reached its minimum or maximum points.

So, in result we get:

• 2/3 half of the trend with minimal risk.
• 350 points of profit.
• Closure made at the trends maximum.
• The transaction was profitable during its existence.

Example 2.

In our second example price trend line breakthrough is a little bit late, unlike the ULTRA_TREND’s trend line breakthrough. Entry point matches the previous transactions’ closure. As you can see, entry point is at the peak of the transaction, unlike the moment when the signal is counted as the actual price trend line breakthrough.

This transaction could have been unprofitable, but hence ULTRA_TREND shows not only the entry and exit points, but also shows us where we need to apply safety measures when making open transactions, so in this case we should cover of the profit with a trailing stop. Trailing stop setup point is marked with a check mark on the second image. ULTRA_TREND outputted a crossing, which means that the trend will either continue with much more power, or will not continue at all or there will be a turn, that’s why the trailing stop is set up at this exact point.

So, in result we get:

• Minor profit – 60 points at minimal risk.

Example 3.

In our third example ULTRA_TREND will show us the price trend line.

Opening and closure of the transaction in this example is the same as in out first example. In this case the first alterations from the maximum where 2 bars, and key level closure was set in accordance to them.

So, in result we get:

• 2/3 half of the trend at minimal risk.
• 187 points of profit.
• Closure has been done at the maximum point of the trend.
• Transaction was profitable.

Example 4.

In our forth example the price trend line breakthrough is very late, unlike the ULTRA_TREND’s trend line breakthrough.

Opening and closure of the transaction in this example is the same as in out first example.

And in result we get the best result out of all examples:

Not all features of the ULTRA_TREND indicator were shown in these examples. Such operation’s success is made not only from the quality filtration and speed, but also from the indicator’s knowledge of the price’s direction, and that you know where exactly to close the transaction and where to cover the floating profit with a trailing stop.

As you can see, the signals to buy or to sell appear in those places, where the market is ready to follow the trend and prevent correction. Closure is done at the end of the trend. Trailing stop is set effectively so it won’t snap into action without notice.

Also there is another strategy based on ULTRA_TREND’s line crossing.

This strategy is also very effective.

We’ve shown only the simple strategies in our examples, but with a little of experience you can improve your trading results.

Simple statistic system, based on ULTRA_TREND: in detail.

Entry and closure is based on ULTRA_TREND, trailing stop is not used, stop loss – 120 points.