3 Trends Filters the data in 3 frequencies to find the fastest trend changes
Trend Indicators generally performs best in markets with low volatility and strong trends. When the markets are choppy with lots of noise trend indicators tend to get whipsawed. Moving averages, MACD’s and RSI’s are commonly used for trend detection but are lagging and they get whipsawed far too often. Our 3 Trends indicator use this proprietary filtering techniques to remove most of the whipsaw and give you accurate trend changes fast.
It comprises of a slow curve, a medium curve and a fast curve. The slow curve represents the longer trend and the fast curve represents the shorter trend.
How to Trade 3 Trends?
3 Trends - Settings
There are settings for the speed of each curve. Values between 0 – 2 are generally adequate. Settings for the slower curve must be larger than settings for the medium curve. Settings for the medium curve must be larger than settings for the fast curve.
All Plots are fully customizable
This Ninjatrader indicator is far superior then any moving average type indicator as it detects trend changes faster, the curve is smoother, the curve provides good trailing support and resistance levels and is far less whipsawed then standard indicators.
Below is a Typical Trade Set-up using 3 Trends
Step 1:
Wait for a long down trend
Step 2:
Early Trend Change Warning
Step 3:
BUY Signal generated by the indicator
Step 4:
Noise in Up Trend – Indicator still moving up
Step 5:
Trend Change Signal = SELL
