Trading alongside the market trend is one of the best trading strategies any trader can implement to make a profit. And therefore, a reliable indicator like the Chande Kroll Stop Indicator can help. With the trend following strategy or approach, it will not only help you to trade wisely, but you will also trade to make consistent profits. However, the most significant barrier to adopting this approach is determining the direction of the trend.
The bitter truth is that you can’t possibly watch over the market with your human intellect and intuitiveness and accurately predict the direction of the trend, which is where Chande Kroll Stop Indicator comes handy. It is highly recommended and is designed for traders using the popular MT4 trading platform. And is specifically built to help traders identify the market trend by calculating the average price direction over a given period.
In light of the above, let’s deeply explain the benefits of using the indicator and why you should always combine it with other best metatrader indicators to form a formidable force.
Description of The Indicator
As a trader, you can use the Chande Stop Indicator in a variety of ways to generate trading insights. The indicator comes with a blue stop line (long) and a red stop line (short). You stop should always be placed on or under the low/high of the last histogram bars.
As long as the indicator is moving in the right direction, it will protect your profit by keeping your trade open. Unlike the fixed stop loss, the trailing stop is very flexible and doesn’t need a manual reset. Once the prices drop below the blue line; you should close any long position. Conversely, if prices move above the red line, you should close any short positions.
And also, traders can use the indicator to spot trend changes. Once the blue line crosses below red lines, a new uptrend is found. In the same vein, a new downtrend occurs when the red line crosses below the blue line.
Benefits of Using the Chande Kroll Indicator
The first and major benefit of using the Chande indicator is that it helps traders to know the end and beginning of a trend. With this in mind, you can spot when the market is moving in a new direction, or about moving in the opposite direction. This is very helpful for a majority of traders, as it enables traders to prepare to take trades in any direction the market is moving.
Another benefit of using the Chande Indicator is that traders can quickly spot trade opportunities in the direction of the trend. Traders can observe the indicator lines crossing each other and then use the information as entry signals in the trend direction.
The Chande indicator can also be used as a guide to determine where to place a stop-loss order when entering a trade in the direction of the trend. With this in mind, traders will be able to calculate their lot size and know exactly where to place the stop loss on the chart.
Furthermore, the Chande indicator can also be used to determine when to exit a trade position. Once there is a price change, the indicator generally points to the end of the trend on that timeframe. For instance, when the trend changes from long to short trend, the Chande Kroll Stop indicator will immediately print its signal lines so that you can identify the direction the trend is heading.
With the indicator, traders can stay in a trend for a long period. Traders can use the indicator lines as the stop loss while also increasing or reducing the stop loss on the price charts depending on the trend direction. This approach will help you to lock in some profits as you increase or decrease your stop-loss target in the trend direction.
The only noticeable drawback of using this indicator is that it may generate false signals when used in isolation. Therefore, try not to use the indicator alone if you don’t want to lose your hard-earned money.
How To Install The Indicator
Below is how to install the Chande Kroll Stop Indicator:
1. Download the file from a reputable source
2. Extract the downloaded file
3. On the MT4 platform, navigate to the “file menu” area and click on “open data folder”.
4. Open the indicator folder and MQL4 folder.
5. Paste the Chande indicator file into the indicator folder
6. Restart your MT4 trader
Summary Of Chande Kroll Stop
The Chande Kroll Stop Indicator is a custom indicator that helps traders to predict trend direction. It is highly recommended and is designed for traders using the MT4 trading platform. It is built to help traders identify the market trend and know exactly when to enter or exit a trade position.
To always win when using this indicator, combine it with other technical indicators like the support and resistance indicator, MACD indicator, stochastic indicator, as well as Gap indicator. And on this platform, you can find plenty more. So look at these through this link and improve your chances of earning.