Brain Trend1 Stop Indicator For MT4
Table Of Contents:
- Brain Trend1 Stop Indicator For MT4
- Trading ideas with the Brain Trend1 Stop Indicator For MT4
- Brain Trend1 Stop Indicator For MT4 - Reversals (Flip-dots)
- Brain Trend1 Stop Indicator For MT4 - Sell And Buy Entries
- Brain Trend1 Stop Indicator For MT4 - Conclusion
The Brain Trend1 Stop Indicator For MT4 plots dots above or below price that suggest the level at which a down trend or an up trend is likely to end. Red dots above price signal the price level at which a down trend is deemed to have ended. Contrarily, Blue dots below price indicate the price level at which an up trend is considered to have reversed/ended. The Brain Trend1 Stop Indicator For MT4 can be used to signal buy or sell levels, as well as denote levels at which stops can be placed.
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Trading ideas with the Brain Trend1 Stop Indicator For MT4
One of the important aspects of trading that you need to have is the skill and ability to determine when the market is trading up or trading down and what is the general outlook. So with this indicator, we can use it to actually determine the market bias and it can be done using a naked-eye inspection as shown in the image below.
So on the left-hand side we have a downtrend so basically the majority of the dots must be magenta dots above the price action which means that we have dominant bearish pressure applied throughout the downtrend. Once you have this basic idea etched into your mind you will then be able to identify bearish trend continuation patterns and also bullish reversals towards the exhaustion point of the downtrend.
Then on the right-hand side in the image above we have an uptrend. An uptrend is identified when the majority of the dots being plotted are light blue dots below the price action compared to the number of magenta dots above the price action. This shows the dominance of the bullish pressure applied throughout the uptrend. So basically with this method, you are able to identify buy trend continuation entries or even various reversals to the downside when the market is about to turn around.
Brain Trend1 Stop Indicator For MT4 - Reversals (Flip-dots)
Naturally when you load this indicator to your chart you will be inclined by the trading idea of trading the changeovers of the dots. So basically when it does change color to flip to the opposite side you will open a trade-in that direction of the changeover as shown in the image below.
With reference to the image above on the left-hand side you can see I have shown you how to identify a proper sell and buy trade. So for a bearish reversal trade, you need to wait for the light blue dots to change to magenta dots then after that, you still need to wait because as you can see above that I actually extended the price level using a red horizontal line from where the last light blue dot was plotted. This level is important because it is our triggering point if the price action pushes through and closes below this level then we may open our sell positions.
Then to the right-hand side, we have a buy reversal trading opportunity which almost follows a similar yet opposite process to the previous sell trading opportunity. So far a buy reversal trade you need to wait for the magenta dots to change to the light blue dots but after that, you still need to wait and looking at price action activity around the buying area. In that circled, you can see that I extended the price level using a red horizontal line from where the last magenta dot was plotted.
This level is important because it is a trigger point for our buy entry. If the price action pushes through and closes above this level then we may open our position. So as you can see the market did actually break this level and it traded and rallied up for an extended period of time though there was a slight retracement which was a stop hunt and then the market continued trading up for a longer period.
Brain Trend1 Stop Indicator For MT4 - Sell And Buy Entries
There is another trading method that I need to bring to your attention using this indicator. So based on the image below I am showing you how to trade proper sell reversals.
This sell signal appears when an overbought M shows up. But let me explain what that actually means. With reference to the image above you can see that the color changed from light blue dots to magenta dots however this sell signal needs to appear in an overbought region forming in overbought-M in the stochastic as indicated in the next textbox.
So in the next textbox, we can see that we have a solid or valid overbought-M during the output of the sell signal. The overbought-M has to appear above the 80-level of the stochastic oscillator indicator. When you have these two elements coming into confluence you can open your sell positions. So for the buy entry, we follow the procedure highlighted in the image below. In the image below, we are actually looking for an oversold-M in the overbought region of the stochastic oscillator in order for us to open a buy order.
So basically the magenta dots need to change to light blue dots however this changeover needs to take place and form when an oversold-W is formed in the stochastic indicator which is shown in the next textbox. So in the next textbox, we have the oversold-W identified during the output of the buy signal. We must buy when the two lows of the W are both below the 20-level of the stochastic oscillator indicator. Therefore, when you have these two conditions appearing around the same time then we need to open up a buy trade.
Brain Trend1 Stop Indicator For MT4 - Conclusion
This trading tools helps us to identify the general dominance of an underlying trend so that we know which way to trade in for trend-continuation trending purposes. However, it also allows us to see where the major turning points are in the market to form new trades and therefore with this insight we could go as far as using this indicator to catch probable reversals.
It generally works excellently well during trend-continuation moves but like I said you can catch proper reversals however you need the right conditions to come into fruition before such trades can be placed. These conditions were expressed in the form of overbought-Ms and oversold-Ws. These basic patterns formed the basis of us being able to identify high probable reversal signals.
