Angle and Speed Indicator MT5

The Angle and Speed (A&S) is a trend-following indicator designed to display the direction and momentum of the price movement. It works by calculating two key factors:

• Angle (Slope): It evaluates the angle of price movement to identify trends- whether the market is moving upward or downward.
• Speed: Measures the rate of change in price, indicating whether the trend is accelerating or declearating.

Unlike other technical analysis indicators, the A&S requires a unique approach for proper application on the chart. To utilize it effectively, traders should follow these two essential steps!:

1. Step 1: Apply the indicator twice to the MT5 chart: First, set the parameter to Angle to measure trend steepness, then, apply the indicator again, selecting Average-Speed to asses price movement.
2. Step 2: Manually draw a trendline on the chart: Once it is drawn, the indicator automatically detects it and displays its angle.

Furthermore, the indicator helps traders to confirm trend strength and to make accurate entry or exit points for trades:

• Trend confirmation:

- If the angle is high (above 45), it confirms a strong trend.

- If the angle is low (below 20), the trend is consolidating.

• Entry and Exit points:

- If speed increases, the price is moving rapidly; look for quick entries.

- If speed slows down, trend exhaustion is near; look for exit signals.

1/ In the CHFJPY chart example on MetaTader 5, drawing a hypothetical trendline reveals that the A&S indicator presents an angle of 67.47°, confirming the bearish movement. As the speed increases and the angle in the indicator window rises, these two factors signal a strong short entry.

This suggests that a trader should consider a quick short midway through the trendline, rather than waiting until its completion.   

2/ In the EURNZD chart example on MetaTrader 5, when drawing the trendline, as shown on the MetaTrader 5 chart, the Angle and Speed indicator calculates an angle of 2.98°, indicating a weakness of the uptrend.

As the speed makes an over high and the angle makes a lower low, these two factors signal a weakness of the bullish momentum and indicate a potential trend reversal. This suggests that a trader should consider exiting his long position and waiting for a confirmation to enter the market.