Trend Trader

The Trend Trader indicator is a trend-following tool based on a triple EMA (Exponential Moving Average) setup designed to help traders identify market direction and potential reversal zones. It plots three customizable EMAs on the chart to highlight bullish and bearish momentum, then generates trade signals when price shows a strong likelihood of continuing in the direction of the prevailing trend.

EMA Alignment: The indicator checks for bullish stacking (fast EMA above medium, medium above slow) and bearish stacking (fast EMA below medium, medium below slow). This alignment defines the prevailing market trend.

Trend Validation: A user-defined lookback period ensures signals are only taken if the market recently displayed a stacked trend, thus filtering false entries during consolidations.

Signal Generation: Buy signals appear when price dips into the zone between the fast and medium EMAs during a bullish trend. Sell signals appear when price rallies into the zone between the fast and medium EMAs during a bearish trend.

Alerts: Built-in alerts notify traders of new trade opportunities without having to constantly watch the chart.

This indicator is suitable for swing trading and intraday strategies across multiple markets, including forex, stocks, indices, and crypto.
Suggested Strategy for Profitability

This tool is best used as part of a structured trend-trading plan. Below is a suggested framework:
Entry Rules

Long (Buy Trade):

Confirm that EMA alignment is bullish (EMA1 > EMA2 > EMA3).

Wait for a Buy Signal (triangle up below price).

Ensure the higher timeframe (e.g., 4H if trading 1H) trend is also bullish to filter trades.

Short (Sell Trade):

Confirm EMA alignment is bearish (EMA1 < EMA2 < EMA3).

Wait for a Sell Signal (triangle down above price).

Higher timeframe should also be bearish to increase probability.

Stop Loss

For long positions, place the stop loss just below EMA3 or the most recent swing low.

For short positions, place the stop loss just above EMA3 or the most recent swing high.

Take Profit

Conservative: Set TP at 1.5x to 2x the stop loss distance.

Aggressive: Trail stop loss below EMA2 (for longs) or above EMA2 (for shorts) to capture larger trends.

Risk Management

Use no more than 1–2% of account risk per trade.

Trade only when the signal aligns with overall market context (higher timeframe, support/resistance, or volume confirmation).

This indicator is very similar to the indicator "Trend Scalper" by the same developer, the difference is this indicator is used to just find the trade and hold the trade or to find the reversal of a trend instead of triggering alerts every time price enters between EMA1 and EMA2.