ACB Trading Filter Indicator 
MT4/MT5

How to use this Trading Filter Indicator

• Only Long Trades if Histogram is green and Trend is bullish, indicating that the price is moving in the same direction.
• Only Short Trades if Histogram is red and Trend is bearish.
• Avoid trading if the Histogram is gray or Trend is sideways.
• Review the final entry signal combined with histogram filter to ensure they meet your trading criteria.

Input Parameters

What is the ACB Trade Filter Indicator?

The ACB Trade Filter indicator is a powerful technical analysis tool designed to help traders identify potential trading opportunities by filtering out market noise and false signals.

This indicator leverages a combination of moving averages and the Directional Movement Index (DMI) to assess the strength and direction of price movements. By providing a clear and concise view of market trends, it enables traders to make more informed trading decisions, enhancing their overall trading strategy.

Enhance your Trading Strategy with the ACB Trade Filter

• It can identify the prevailing market trend.
• Use other indicator's signals to determine potential entry and exit points.
• Apply the histogram directional filters to enhance the accuracy of your trades.
• Look for signs of the trend's continuation to confirm that the price movement is likely to persist in the identified direction.
• Monitor the indicator's performance and adjust your strategy as needed based on market conditions.

Designing a New Trading Strategy with ACB Trade Filter

The ACB Trade Filter indicator can be an integral part of a trading strategy, helping traders pinpoint potential entry and exit points in the market. Here’s a step-by-step guide on how to incorporate this indicator into your trading strategy:

1. Set Up the Indicator: Begin by setting up the ACB Trade Filter Indicator on your chart, along with a moving average and the DMI.
2. Identify the Trend: Use the moving average and DMI to determine the current trend direction.
3. Spot Potential Entry Points: Look for potential entry points when the price reaches key levels, such as support or resistance zones.
4. Confirm the Trade: Use the ACB Trade Filter Indicator to confirm the trade by ensuring the price movement aligns with the identified trend direction.
5. Set Exit Points: Determine your exit points based on your exit signals, such as when the price movement reverses or reaches a predetermined level.

By following these steps, traders can effectively use the ACB Trade Filter indicator to enhance their trading strategies, ensuring they enter and exit trades at optimal points based on clear, reliable signals.