Call Now To See How We Can Help!
When the histogram changes to black, indicating a weakening trend, or turns red, signaling a possible emergence of a new trend, it may be prudent for traders to exit their positions. When a power trend is active, there is a stronger than usual uptrend underway. The concept of a power trend was defined by Investor’s Business Daily, more specifically, their Market School course designed to mimic the trading style of IBD’s Founder, William O’Neil. The price action in a major index, such as the Nasdaq Composite, is the source for determining a Power Trend’s status.
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. While you can use it for free, remember that republishing the code is subject to our House Rules. We screen for stocks with momentum using our proprietary tools. Default settings of this indicator are rather suitable for scalping and in our opinion give too many signals (a lot of noise). In the examples below, we changed the value of option PT_Period from 1 to 10. In a result, we get fewer signals, more quality, and for medium to long-term horizon, so suitable for swing trading.
However, you can use it freely and without any limitations – learn more here. Since then, POWERTRENDS has become a part of the history of the Philippine energy sector. There is a Power Trend “circuit-breaker” when the price breaks below the 50-day line and closes 10% or more from a recent high. We find options with the potential to bring in big gains.
The Power Trend Indicator exhibits its information in the form of a histogram in a subwindow, situated below the main trading chart on the MetaTrader 4 platform. This histogram fluctuates above and below a zero line, representing the strength and direction of the trend. In this video the Optioneering Team will explore the PowerTrend System for trading stocks. The PowerTrend System is a mechanical trend following system that uses the 10-Month Simple Moving Average of a stock to generate clearly defined ‘buy’ and ‘sell’ signals. This enabled us to do historical testing over the past ten years. The profit/loss for each trade was calculated and a cumulative total was maintained over the ten year test period.
The Power Trend MT4 Indicator is an indispensable tool for traders employing trend-based strategies. Its visual and color-coded histogram offers a swift understanding of trend dynamics, aiding in timely decision-making. However, prudent use of other tools and risk management practices are essential for a balanced and profitable trading strategy. UseThinkScript is the #1 community of stock market investors using indicators and other tools to power their trading strategies. Traders of all skill levels use our forums to learn about scripting and indicators, help each other, and discover new ways to gain an edge in the markets.
When you first load the power trend you will notice that it consists of colorful bars that are either rising above the 0 level or falling below the 0 level. Each color has a meaning as it determines the presence of a trend, direction, and strength. In other words, it’s able to show the possible emergence of a new trend, and determine if the trend strength is low, moderate or strong. But at Schaeffer’s we use strict trading rules to cut our losses short. And with targeted trade returns of up to 150% and 2-4 trade recommendations per month, it won’t take many winners to make this strategy pay off.
Trading Leveraged Products like Forex and Derivatives might not be suitable for all investors as they carry a high degree of risk to your capital. In addition to the visual signals mentioned above, you can also set Alerts to be notified when a Power Trend starts or ends. This is one of the more unique and helpful features of this indicator. The specifics of a Power Trend were defined by Mike Webster, Justin Nielsen and Charles Harris, while working with William O’Neil at IBD. The uptrends of the Nasdaq Composite were studied in great detail, looking for characteristics that were similar across significant uptrends. The end result was a set of rules that define when a Power Trend starts and ends.
Profiting on your stock/ETF trade when your stock/ETF is up, down or flat will result in a higher percentage of winning trades and can give you the confidence you need to become a successful trader. Learn how to set up covered call trades that can profit in up or down markets. If you prefer to keep your charts clean, the stoplight option may be your best bet. This chart signal displays green, yellow or gray depending on the status of the Power Trend.
This is an early sign of the new bearish trend emerging. Appearing of the blue color bars means that the strend is getting stronger. The red bars indicate that there are some minor PowerTrend forces in the opposite direction. The direction of the trend is changed to upwards when the bars switch form negative to positive (above 0 level). This is an early sign of the new bullish trend emerging. While the Power Trend MT4 Indicator is potent on its own, combining it with other MT4 indicators can enhance its effectiveness.
Copyright © 2025 FactSet Research Systems Inc.© 2025 TradingView, Inc. By providing early warning for potential pullbacks and reversals, rs can confidently position their s and maximize upside while minimizing risk. This foresight is crucial during both mid-trend consolidations and late-trend exhaustion phases. What’s more these colorful bars can overlap each other, depending on the stage of the trend.
For example, when the light is green, a Power Trend is on. Yellow signals the Power Trend is still in place, however, the price is below the 50-day SMA. When a Power Trend is active, there is a stronger than usual uptrend underway. The concept of a Power Trend was defined by Investor’s Business Daily, more specifically, their Market School course designed to mimic the trading style of IBD’s Founder, William O’Neil.
No one can ever exhaust every resource provided on our site. What sets the Power Trend Indicator apart is its ability to visually display the strength of the trend in four different colors. This color-coded representation offers a swift understanding of the current market situation.
If you’re interested to learn more about my work with TradingView, I’ve published 12 indicators that are are free to install and use. We determine the best time to buy options and give you recommendations in real time to help you make more money, with less upfront capital. Join useThinkScript to post your question to a community of 21,000+ developers and traders. This indicator isn’t a “magic wand” but a refined tool designed to support serious rs. With PowerTrend Radar, you gain insights that empower you to make better decisions without succumbing to gimmicky sales pitches.
A Lawyer you can talk to providence
car accident attorney who puts you
first - Call Us Now - (401) 831-0555
