BrainTrend1Sig Indicator For MT5
Table Of Contents:
- BrainTrend1Sig Indicator For MT5
- Trading ideas with the BrainTrend1Sig Indicator For MT5
- BrainTrend1Sig Indicator For MT5 - Buy Entries
- BrainTrend1Sig Indicator For MT5 - Sell Entries
- BrainTrend1Sig Indicator For MT5 - Conclusion
The BrainTrend1Sig Indicator For MT5 is the signal version of the indicator BrainTrend1. It uses the ATR and the stochastic oscillator as the basis for the calculation. As a result the indicator can detect the direction of the trend. Every time when the direction of the trend changes then a signal is drawn on the chart. This signal can be used to enter a new position or close the old position. Green circles signal buy entries while violet circles give sell signals.
The BrainTrend1Sig Indicator For MT5 uses the opening and closing price of the market. People who prefer intraday trading can gain a significant advantage from this tool as it focuses on the extreme levels of the market. The extreme price levels are determined with the stochastic and ATR algorithm.
The sampled data is then processed with the internally coded algorithm of the BrainTrend1Sig – indicator. The signals are then generated in the form of simple colored dots which gives the investors a clear clue about the potential buying and selling signal. For instance, lime green dots below the candles tell us the bulls are getting stronger. On the contrary, the purple color candle right above the top of the candle tells us the market is getting into the overbought zone and ready to fall.
But having this confirmation dot doesn’t mean you will be taking the trades without analyzing the price pattern with the help of a trading method. The success of retail investors greatly depends on the trader’s skill. Skilled traders usually manage to take professional actions most of the time by executing their trades at important support and resistance. Though it might take a while we will give you the perfect guideline to select the right strategy.
Trading ideas with the BrainTrend1Sig Indicator For MT5
Before you move to the use of the BrainTrend1Sig Indicator, it is important to select a trading method that has a high success rate. We have already told this trading method works best when the trades are taken in a higher time frame. Developing a higher time frame trading method might seem hard but you can easily do so by using the paper trading account.
In the learning stage, try not to risk too much even though you will be using the demo account. Once get hold of the trading method and feel comfortable, get to the BrainTrend1Sig Indicator. The default ATR period is set 7 and the stochastic period is set to 9. This setting should perfectly work fine with most of the trading instruments but in case the market volatility is extremely high for an extended time, you can increase the period to 9 and the stochastic to 11.
Test the new settings for the BrainTrend1Sig Indicator and see if you can truly manage to find the reliable trade setups at the important trading zone. If you feel contented with the backtesting result, move to the real market and start making some money.
BrainTrend1Sig Indicator For MT5 - Buy Entries
Executing the long orders might seem very easy but it's not. By careful assessment of the support zone, you should find the critical support levels are often broken. With the trading system, you need to determine the reliable support zone to take the long trade. Failing to take the long order at the reliable support zone imposes a great level of threat to your trading business.
To ease the process of a long trade, you can study the different bullish price action signals. Look for the bullish price action pattern at the important support zone. Use the basic indicator included in your trading method to get the accurate price for the trade execution. Once everything is in order, you have to check the data from the BrainTrend1Sig Indicator.
This indicator should print a simple green dot below the trade signal zone which is a strong indication that the price is going to rally higher. If the risk-reward ratio is better than 1:3, you can take the long trade without any hesitations. But don’t forget to keep the risk less than 2% of your account or else you would be having trouble covering up the losses.
BrainTrend1Sig Indicator For MT5 - Sell Entries
Finding the desired sell signal at the most stable state of the market is a very big challenge. Those who have strong skills in support and resistance can do that very well. That’s why have emphasized the importance of having a robust edge in the trading ideas section. By carefully analyzing the chart, you can easily determine the exact levels where the sell signal took place.
Look for the important rejection at the price right at major resistance. Those who are willing to open short order at the break of the support must find a strong bearish candle. As the sell signals are spotted in the chart, traders are expected to wait for the purple dots above the candles. This dot will be created by the BrainTrend1Sig Indicator and it will act as a strong confirmation.
But don’t forget the risk is still there in each trade. To minimize the impact from the losing trades, an investor should look for the potential sell signal by analyzing the TP and SL level. This will let them determine the proper lot size and risk to reward ratio. Without considering these important parameters, taking trades based on the BrainTrend1Sig Indicator is not going to work in the long run.
BrainTrend1Sig Indicator For MT5 - Conclusion
The goal of using the BrainTrend1Sig Indicator is to ease the process of trading. People who fail to use the indicator in a strategic manner will lose money most of the time. They will be using the tool in the most aggressive manner. After winning a series of good trades, they will become blind and ignore the basic rules set for the investment business.
This is where things begin to go south. No matter what, the BrainTrend1Sig Indicator function should be limited to filter the trades only. If you expect more than that from this indicator, you will be ignoring the core rules set by your trading system. People usually trades in a systematic manner since they know the random outcome from the markets. So, if you wish to become a full-time trader, you should expect random losing orders even though the BrainTrend1Sig Indicator is a very powerful filter tool.
Take some time to study the economic events since it will enhance your trade execution and allow you to ignore the most volatile state of the market. However, people who are willing to master the news trading method must know the proper way to control their emotions. And having skills on the proper use of the BrainTrend1Sig Indicator along with the three main forms of market analysis is a must.