PW Trend indicator for fx is a hotly sought after metatrader indicator. Whilst the forex indicator iteself only retails at just under $100, traders seem, none the less, reluctant to purchase it.
Here at GTS, we do get many requests and one of the most popular requests is “do you have the PW Trend to download for free”. Whilst we haven’t bought PW Trend and do not have the official indicator, I feel PW Trend falls into the category of being “like many other indicators”.
As I have shown before in some of the trading articles on this site, one indicator, although maybe not the same as another, can give identical signals. This can be due to the way the indicator is calculated or could simply be that one indicator has been taken by the vendor, adjusted slightly and then sold on and you end up comparing the system indicator to the ‘original’. Which ever the case it doesn’t really matter. All that matters is we traders get a similar indicator for free or more to the point, you save your pennies by not buying an indicator that is already in your database of indicators.
The PW Trend site shows this chart image as an example of the trades it ‘makes’. As soon as I saw this I knew we had seem the indicator before or at least a very similar indicator.
Within 2 minutes of searching pervious articles on here I came across it. Personally, I think it is based on Ultra Trend which I wrote about here.
The only changes you would have to make to make it look like the forex indicator PW Trend is colour the blue line to ‘none’ so in essance it disappears and then change the horizontal lines in the indicator properties, under the heading ‘Levels’. You need to set your lines to 4, 14.5, 16.5, and 27. This is how I knew it was very similar to PW Trend.
There are very few indicators I know that range from 0 to 31, and thus to split the mid-line and have a line either side the ‘levels’ fit in very neatly.
In the PW Trend image it seems to suggest you trade the break of the line just above/below the midway point for a touch of the extreme either at 0 or 31. This is very similar to a lot of RSI systems. It may be worth doing a google search for for some of those and get an idea of ways of trading single line indicators.
Hopefully this article has shown you again, that if you a take a bit of time to think about indicators and how they are creating signals you will soon see they are all very similar.
I have edited the Ultra Trend Indicator and saved it as new version to download so you don’t have to edit the ‘levels’ etc.
Download GTS’ version of: PW Trend
I will leave it up to you to decide if this indicator is the ultimate forex indicator or at least, better, worse or the same as PW Trend.