Autochartist MT4 Plug-in of Tickmill

Tickmill offers Autochartist to all the clients with a live account, for free. Tickmill is even giving access to demo account holders with a delay of 5 candlesticks!

Equip your arsenal with a powerful technical analysis tool and take your trading to the next level.

The Autochartist plugin integrates seamlessly with your MT4/5 platform, giving you access to continual market analysis within a single chart, and the ability to execute trades directly in your MT4/5.

Install the MT4/5 plugin and get a simple interface with all of the Autochartist features, customised to your trading environment.

Please download the instructions for installing the MT4/5 plugin on a Mac OS device.

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Should trade by the trend or against?

One of the principles of technical analysis is that prices move in trends. Each trend consists of periods when the price moves in the direction of this trend and minor periods where the price corrects and goes against the trend. Trend following strategy implies that a trader opens a position in the direction of the main trend. In other words, buy when the trend is up and sell when the trend is down. The best time to enter the market using this approach is when the correction ends and the main trend continues. “Buy low and sell high” is a trader’s favorite mantra. Trend-fighting traders don’t wait for a correction to open positions. If the market is in an uptrend, they can sell when the price reverses from resistance and sets a price target near support. Their motivation is that the price is already too high, so it will definitely go down. Does this approach have similar risks or not? Which one can offer the trader greater profit?

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Example of Trading by trend

Most traders can determine the current trend. The hard part is deciding how to act. Let’s continue with the example of an uptrend. Trend trading implies that you will buy at the support or at the break of the resistance. In the first case, you would use instruments like trendlines and Fibonacci retracements. In the second case, you can use continuous chart patterns such as triangles, flags, and wedges.

Some traders will buy at point 1 (trendline support and Fibonacci retracement level) or 2 (break of the “Flag” pattern), some will wait for point 3 (break above the previous high). Of course, the lower you buy, the bigger your profit.

Take profit

You can set your profit target based on the previous high price of the uptrend (low price of the downtrend) or even a level above it if you are more confident in your trading.

Stop Loss

Note that when you are in a trend, you can use a trailing stop that follows the trend. However, be aware that it may not be easy to decide where to move the stop loss. The risk is a brief correction that will cause the market to stop your stop loss and close your order.

Scaling

It is allowed to be added to the order position when you are following the trend if the market is already moving and in your favor so that your trading order becomes a profit. In this way, your profit potential will increase. Don’t forget to adjust your risk management if you do this. You can also plan to start with smaller trades than usual (for example, buy at point 1) and then increase it when the price rises above point 2. This tactic will reduce your risk.

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Example of Trading against the trend

The strategy against the trend aims to determine the point of trend reversal. Traders who use this approach take their cue from reversal candlestick patterns (pin bars, evening/morning starts, etc.). They also apply oscillators such as MACD or RSI to see if the market is overbought/oversold and whether there is a discrepancy between the price and the indicator. If this sign appears, the trader opens a position against the previous trend.

The trader may decide to sell at point 1 because the price formed a candlestick with a long upper shadow (negative sign) and the MACD indicator did not confirm the high price.

Take profit

It’s harder to find a place to improve your profit when you’re trading against the trend. The challenge is not to be too greedy. Remember that you are betting against the market. Some trends can turn sideways which limits the profit from positioning orders against the trend. The initial trend can also be continued quickly and not allow the true price to correct too much. As a result, be careful and manage the risk.

Stop Loss

The location for a stop-loss order in such a trade is natural. the trader places their stop loss behind the extreme point of the price from which the correction has started. The stop loss will likely be smaller than what you would use if you were trading based on the trend.

Scaling

It is not a good idea to increase your order position when you are trading against the trend. Trading can be short-term, so you run the risk of getting yourself in an uncomfortable situation if you try to add to a trade order. And never add an order when a loss position because it can cause a bigger loss.

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Conclusion

As you can see, these two trading approaches have their own special characteristics. Both can generate trading signals, but each requires a risk management strategy. The general policy of traders is that the strategy against the trend requires more experience and beginners should start with the strategy based on the trend. Practice and see which one works well for you!