How To Use Trend Bars Pro

Leveraging HTF Candles with Trend Bars Pro

When trading with the Trend Bars Pro indicator, combining High Time Frame (HTF) Candles can significantly enhance trade accuracy. This guide explains how to utilize HTF Reversal Bars and Continuation Bars to identify optimal trade entries.

Understanding the Setup

HTF Signal Bars HTF candles can signal the market's direction using two key types of Signal Bars:

1. Reversal Bar: Indicates a potential change in direction.

2. Continuation Bar: Confirms that the existing trend is likely to persist.

Trading Confluence For higher-probability trades, align the direction of HTF Signal Bars (Reversal or Continuation) with the Trend Bars Pro signals on your chart time frame.

Step-by-Step Trading Process

Step 1: Select the HTF and Chart Time Frame

• Choose a higher time frame to monitor for Signal Bars (e.g., Daily or 4H).
• Use a lower time frame for active trading and entries (e.g., 1H, 15M).

Chart Time Frame	High Time Frame
15s/30s	5m
1m	15m
3m/5m	1h
15m	4h
1h	1D
4h	1D/1W
1D	1W
1W	1M

Step 2: Identify the HTF Signal Bar

• Watch the HTF candles for either a Reversal Bar or a Continuation Bar:
  • Bullish Reversal Bar: Suggests price is likely to move upward.
  • Bearish Reversal Bar: Suggests price is likely to move downward.
  • Bullish Continuation Bar: Confirms ongoing upward momentum.
  • Bearish Continuation Bar: Confirms ongoing downward momentum.

Step 3: Enter the Trade

• Enter a trade once the direction of Trend Bars Pro aligns with the HTF Signal Bar or print a signal bar in the same direction.

Step 4: Manage the Trade

• Stop-Loss: Place below (for long) or above (for short) the recent swing on the chart time frame.
• Take-Profit: Target key levels (support/resistance) or set based on a risk-reward ratio (e.g., 2R or 3R).

Pro Tips for Effective Trading

1. Time of Day: Align entries with market sessions (e.g., London or New York) for better liquidity and volatility.
2. Avoid Premature Entries: Wait for Trend Bars Pro confirmation to reduce false signals.
3. Market Context: Use additional tools (e.g., FVGs, Divergences, key levels) to validate HTF Signal Bars.
4. Backtest the Strategy: Analyze historical data to refine entry and exit criteria.

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Combining Bars, Ranges and Dynamic Trend

Combining all three concepts gives you a crystal-clear picture of the market. The Dynamic Trend shows you the overall trend. If price pulls back to the dynamic trend line and then price picks up the trend direction again, then the TRN Trend Bars Pro immediately switches the color to the trend direction. Therefore, you can easily identify high probability entry signals based on the bar color.

As a simple trading model, you can set the stop loss below the last swing or below a TRN signal bar (vice versa for short entries) and use 2.5 R or 3 R as target.

You can increase the success rate of the high probability TRN signal bars entries even more if they are in line with the Dynamic Trend line.

On the other hand, the TRN Bar Ranges help you to stay out of the market in case the price does not really change. As a confluence signal to stay flat in this period the dynamic trend line tends to be grey as well. If the price breaks out of the range, then the indicator prints a breakout bar which serves as a high probability entry signal.

Although it is possible to switch off any of these concepts, it is highly recommended to use all three in combination to get a crystal-clear picture of the market.

Pattern Breakout Entry Signals

The versatility of Trend Bars Pro extends beyond their individual functionality. They also act as breakout conditions for several of our chart patterns, including Harmonic Patterns Suite and Consolidation And Range Pattern. When combined with other signals, such as those from SMT/Divergence Suite, the Signal Bars provide valuable entry signals for setups with highly favorable odds. By integrating these multiple indicators, traders can enhance their trading strategies and increase the likelihood of successful trades. The synchronized collaboration of Trend Bars Pro with other TRN tools enables traders to seize opportunities with greater confidence and accuracy.

tip

Check out our Combinations section to learn about all the possible setups with the Trend Bars Pro in combination with other TRN Tools like Swing Suite or SMT/Divergence Suite.

Monitoring Your Trades

Reversal or Continuation Signal Bars

If you are already in a position, a reversal bar can be a buy or sell signal to close the position. A continuation bar, on the other hand, can be a signal for the possibility of increasing a position. Breakout bars can also serve as both a reversal and continuation signal for an existing position, depending on the direction of the breakout.

tip

Especially on High time frames, like on the daily or weekly, reversal and continuation signals from the Trend Bars Pro can have favorable odds for success.

Pattern Monitoring

When you find yourself holding a position following a confirmed breakout from a TRN chart pattern, the presence of Signal Bars becomes instrumental in determining whether you should maintain your trade or consider closing your position.

If you happen to be in a short position, similar to the example provided, subsequent to a pattern breakdown, it is crucial to monitor the emergence of bullish Signal Bars, such as the blue reversal bars. In the case of being in a long position, it is of utmost importance to closely observe the appearance of bearish Signal Bars, such as the pink reversal bars.

These bars signify a potential shift in the prevailing trend and can act as an exit signal, particularly if they manifest frequently or coincide with significant support or resistance zones. Keeping a keen eye on these Signal Bars enables you to make well-timed decisions regarding the continuation or closure of your trade.

In the provided illustration, a breakout from a TRN Gartley pattern on the BTC/USD 4-hour chart was confirmed. Following the entry point, a price range materialized, ultimately breaking upwards towards the end. In this particular scenario, the confirmed bullish breakout bar would have served as the signal to close the position, effectively avoiding a larger loss. Closing the position at that point would have prevented the pattern from subsequently triggering the stop-loss, thus minimizing potential losses.

tip

Discover the power of our Trend Bars Pro Alerts! Stay informed effortlessly as they notify you of trend changes, signal bar occurrences or confirmations, and even detect range breakouts. Delve into our dedicated Trend Bars Pro Alerts section to master their effective usage.

note

While signals from Trend Bars Pro and TRN Chart Patterns can be informative, it is important to recognize that their reliability may vary. Various external factors can impact market prices, and it is essential to consider your risk tolerance and investment goals when executing trades.