Trend Blend

Trend blend is my new indicator. I use it to identify my bias when trading and filter out fake setups that are going in the wrong direction.


Trend blend utilises the 9 EMA (Red), 21 EMA (Black), and if you trade futures or Bitcoin, you can also use the VWAP (Blue).




There is also a table at the top right that displays the chart time frame bias

I prefer to use the 1-hour time frame for bias and execute the trades on 5-minute charts, mainly, and sometimes on the 1-minute for a smaller stoploss.

Here's an example of the trade I took during the London session on XAU/USD

1 hour bias was Bearish
Price broke out of the range
I waited for the London session to open, where I ended up taking a short on the 5-minute time frame as we broke out of the pre-London range
Entry was at the Fair Value Gap (5-minute bias was also Bearish as price traded into the FVG)
Stoploss was at the last high
Take Profit was the next major support level




Another set that I like to trade with the Trend blend is when price is trending bullish and price trades inside the 9 and 21 EMA, and there is a bullish candle closer above the 9 EMA with Stoploss below the low of the bullish candle and Take profit between 1-2 Risk to Reward

Same when there's a bearish trend, I wait for price to trade inside the 9 and 21 EMA, and I'll take sells when a bearish candle closes below the 9 EMA.

This setup works best in strong trends, or it can be used to enter a trade on a pullback or to scale into an existing trade.