Chapter 4: Establishing Your Baseline Indicator

Your baseline indicator, akin to a trend line, is pivotal in identifying trending markets and avoiding non-trending ones. It should balance proximity to price without being too tight or too loose—too tight causes excessive entries/exits, too loose misses opportunities. Seek a baseline that keeps trades within 1 ATR of price movements. Use MT4 to test various baselines, watching tutorial videos for cross-entry basics, ensuring it complements your primary and secondary indicators for a cohesive trend-following system.