Trend Intensity Index 1.3 Averages Indicator

Trend Intensity Index 1.3 Averages Indicator

The Trend Intensity Index 1.3 Averages (MTF) is a technical MT4 indicator designed to accurately determine the market bias and measure the strength or weakness of price trends.

Trend trading revolves around utilizing price action to spot profitable opportunities. Traders aim to buy low in an uptrend and sell high in a downtrend, capturing momentum in one dominant direction. The Trend Intensity Index helps simplify this process by identifying not only trend direction but also potential entry and exit points based on trend strength.

Importantly, the Trend Intensity indicator goes beyond producing simple signals. It visually shows when to enter a buy or sell position and estimates how long a trend may continue before a possible reversal, giving traders more clarity in decision-making.

Read the article fully to understand how the Trend Intensity Index 1.3 Averages (MTF) operates on MT4 platforms.

How to Trade Using the Trend Intensity Index 1.3 Averages (MTF) Indicator for MT4

The Trend Intensity Index 1.3 Averages (MTF) applies a colored signal line in a separate indicator window to convey crucial trend information.

Oversold Conditions (Buy Setups)

When the intensity index dips below 20 and the line turns brown, the market is considered oversold.

This is where traders begin looking for potential buy opportunities.

When the indicator value rises above 20 again, it signals upward momentum and confirms long entry conditions.

Overbought Conditions (Sell Setups)

When the signal line climbs above 80, the market enters the overbought zone.

For sell confirmation, the line must drop below 80 and turn gray, signaling weakening bullish pressure and a possible downside move.

Gray Line Interpretation

The gray-colored line indicates an active trending market. Combining trend bias with trend strength or weakness helps traders structure trades from entry to exit.

Example

Suppose you opened a buy trade once the indicator crossed above 20 and shifted to gray.
You could hold the trade until the intensity index rises above 80 and changes to blue, signaling that the market is now overbought and may soon reverse.

Limitations

One notable drawback is that the indicator may produce inconsistent signals during choppy or sideways markets.
For best results, only focus on setups appearing within strong, trend-driven market conditions.

Conclusion

The Trend Intensity Index 1.3 Averages (MTF) is one of the most versatile MT4 trend indicators for beginner and intermediate traders. It helps you spot trend-following opportunities around key support and resistance areas and evaluate the validity of each signal. Its multi-timeframe (MTF) capability allows traders to adapt to different market environments using a single indicator, making it a valuable tool for trend-based strategies.