HOW-TO Use the MTPTrend Colour
Updated
In this help tutorial, we take a look at the MTPTrend colour and show how you should not simply consider all MTPredictor trade setups that fall with the MTP Trend colour, which is Blue for up, Red for down and Grey for in the process of making a reversal. MTPredictor is not a 100% mechanical "Black-Box" system that is designed to be traded all of the time. This is because we believe that Markets are random about 50% of the time, and as such are not in a clear larger degree pattern about half the time. Therefore it is best to only consider trade setups when (and only when) the larger degree pattern is clear.
To decide when the larger degree pattern is clear we use our MTP Decision Point (DP) levels on the higher time frame chart.
As the video shows, it is best to first use the higher time frame DP's for larger degree support / resistance and then see whether the market is indeed performing as these anticipate, then see whether the MTP Trend colour agrees with this analysis. Rather than using the MTP Trend colour first. So it is larger degree DP's first, then MTP Trend colour second, not the other way round.
I hope this help Tutorial has helped and shown how best to use our MTP Trend indicator colour.
Please remember, that Trading is risky and losses can and will unfold, no matter what Trading approach you take.
To decide when the larger degree pattern is clear we use our MTP Decision Point (DP) levels on the higher time frame chart.
As the video shows, it is best to first use the higher time frame DP's for larger degree support / resistance and then see whether the market is indeed performing as these anticipate, then see whether the MTP Trend colour agrees with this analysis. Rather than using the MTP Trend colour first. So it is larger degree DP's first, then MTP Trend colour second, not the other way round.
I hope this help Tutorial has helped and shown how best to use our MTP Trend indicator colour.
Please remember, that Trading is risky and losses can and will unfold, no matter what Trading approach you take.
Note
Update: Here is the position of the EURCAD 4hr chart a day later:As you can see, the EURCAD did indeed carry on down, and as such the DP Buy that was discussed in the video would have been stopped out. Therefore avoiding the Buy, because the larger degree trend (as defined by the higher time frame DP levels) was down, was the correct decision.
I hope this has been a good example, to show how to use the MTP Trend colour, and in particular why it is larger degree DP's first, then MTP Trend colour second, not the other way round.
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Help Videos: mtpredictor.com/tradingviewhelp/
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