In addition, the percent change in price can be shown when exiting a power trend. When a power trend is active, there is a stronger than usual uptrend underway. But at Schaeffer’s we use strict trading rules to cut our losses short.
ROC Indicator
Appearing of the blue color bars means that the strend is getting stronger. The red bars indicate that there are some minor forces in the opposite direction. The direction of the trend is changed to upwards when the bars switch form negative to positive (above 0 level). When you first load the power trend you will notice that it consists of colorful bars that are either rising above the 0 level or falling below the 0 level. Each color has a meaning as it determines the presence of a trend, direction, and strength. In other words, it’s able to show the possible emergence of a new trend, and determine if the trend strength is low, moderate or strong.
- We tested a portfolio of five stocks and five ETFs that are listed below.
- If you trust the source of the indicator and want to use it, click “Yes” to confirm the use of DLLs.
- Trading Leveraged Products like Forex and Derivatives might not be suitable for all investors as they carry a high degree of risk to your capital.
- With its visual and color-coded histogram, it provides a quick and intuitive understanding of trend strength and direction.
- We find options with the potential to bring in big gains.
Power Trend
It is also customizable, allowing traders to adjust the settings to best suit their trading style and strategies. The Power Trend MT4 Indicator is an invaluable tool for traders focusing on trend-based strategies. With its visual and color-coded histogram, it provides a quick and intuitive understanding of trend strength and direction.
The Power Trend Indicator has an interesting ability to measure market trends and provides a visual display of their various stages. That gauge tells a trader what is the trend direction and its strength. The price action in a major index, such as the Nasdaq Composite, is the source for determining a Power Trend’s status. Using an index is based on the definition of a Power Trend from Market School. With this indicator, in addition to indexes, it will allow an ETF (more specifically, a “fund” as defined by TradingView) to be used as the source.
- We accept no liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from use of or reliance on this indicator.
- Copyright © 2025 FactSet Research Systems Inc.© 2025 TradingView, Inc.
- It displays a graphical representation of the price action, along with the trend direction and strength.
- For example, you can create an Alert on the Nasdaq Composite that will send a message whenever the requirements for a Power Trend are met.
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In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. While you can use it for free, remember that republishing the code is subject to our House Rules. Default settings of this indicator are rather suitable for scalping and in our opinion give too many signals (a lot of noise). In the examples below, we changed the value of option PT_Period from 1 to 10. In a result, we get fewer signals, more quality, and for medium to long-term horizon, so suitable for swing trading. This indicator is for informational and educational purposes only.
The Power Trend Indicator for MT5 is easy to use and understand. It displays a graphical representation of the price action, along with the trend direction and strength. It also provides a range of technical indicators, such as moving averages, RSI, MACD, Stochastic, and others. This allows traders to easily analyze the market and make informed trading decisions.
Power Trend and How to Spot it on a Chart
The uptrends of the Nasdaq Composite were studied in great detail, looking for characteristics that were similar across significant uptrends. The end result was a set of rules that define when a Power Trend starts and ends. If you trust the source of the indicator and want to use it, click “Yes” to confirm the use of DLLs. If you are not sure or do not trust the source, click “No” to cancel the installation. If the indicator you are installing requires access to external Dynamic Link Libraries (DLLs), you may see a pop-up message asking you to confirm the use of DLLs. The other prominent box that is often shown on LevelUp is the moving average alignment box, shown below.
The PowerTrend System is a mechanical trend following system that uses the 10-Month Simple Moving Average of a stock to generate clearly defined ‘buy’ and ‘sell’ signals. This enabled us to do historical testing over the past ten years. The profit/loss for each trade was calculated and a cumulative total was maintained over the ten year test period.
Open-source script
We determine the best time to buy options and give you recommendations in real time to help you make more money, with less upfront capital. We screen for stocks with momentum using our proprietary tools. Copyright © 2025 FactSet Research Systems Inc.© 2025 TradingView, Inc. Only users authorized by the author have access to this script, and this usually requires payment. You can add the script to your favorites, but you will only be able to use it after requesting permission and obtaining it from its author — learn more here. For more details, follow the author’s instructions below or contact JohnMuchow directly.
The Power Trend MT4 Indicator helps in this aspect by offering visual cues for potential exit points. When the histogram changes to black, indicating a weakening trend, or turns red, signaling a possible emergence of a new trend, it may be prudent for traders to exit their positions. The Power Trend Indicator exhibits its information in the form of a histogram in a subwindow, situated below the main trading chart on the MetaTrader 4 platform. This histogram fluctuates above and below a zero line, representing the strength and direction of the trend. If you prefer to keep your charts clean, the stoplight option may be your best bet. This chart signal displays green, yellow or gray depending on the status of the Power Trend.
A power trend indicates a strong uptrend marked by specific conditions. These include the positioning of key indicators such as the 21-day EMA and 50-day SMA, as well price action. LevelUp automates the identification and visualization of power trends, offering customizable settings and comparison with moving average alignment. The Power Trend MT4 Indicator is an indispensable tool for powertrend traders employing trend-based strategies. Its visual and color-coded histogram offers a swift understanding of trend dynamics, aiding in timely decision-making.
There is a Power Trend “circuit-breaker” when the price breaks below the 50-day line and closes 10% or more from a recent high. We find options with the potential to bring in big gains. It should be noted, I am using the Nasdaq for all the charts that follow. Once the 21-day crosses below the 50-day that is a sign the trend may be coming to an end. Mike also mentioned there are “circuit-breaker rules” that can end a PT before the 21-day to 50-day crossover. Here are the primary considerations for a market to be considered in a Power Trend.
