BS Trend, it's not what you think. BS Trend stands for Buy and Sell Trend. This strategy aims to determine the exact entry and exit points using two complementary indicators that indicate the trend direction, entry and exit. This is a very simple strategy that anyone can use in their trading.
The big trend indicator
There are many different ways to identify trend direction using indicators. Probably one of the most common indicators used to identify the trend is the moving average. Almost all traders have a moving average in their system.
With the moving average indicator alone, there are also many different ways to determine the direction of the trend. It could be determined based on the price location in relation to the moving average. It can also be a pair or stack of moving averages used by identifying the position of one moving average with respect to another.
Another way to identify the trend using moving averages is to look at the slope of the moving average. The direction of the slope determines the direction of the trend. When the moving average rises, the market is considered bullish. If the slope is going down, it's bearish. This is sometimes referred to as the slope direction line.
The Big Trend Custom Indicator works just like the third method would identify the trend, using the slope of the moving average to determine the trend. It conveniently changes color as soon as the moving average changes direction. Lines sloping upwards are colored light blue while lines sloping downwards are colored tomato.
The BS trend indicator
The BS trend indicator stands for "Buy" and "Sell". This indicator is again a trend-based indicator. Moving averages are also used to identify the trend. What it does, however, is that it conveniently shows where to get in and where to get out of the market. It is very similar to the traffic light and tells you when to “go” and when to “stop”. It does this by conveniently printing histograms. Positive histograms in the color spring green indicate a bullish market. Negative histograms are printed in red, indicating a declining market.
Trading strategy concept
The entry and exit of this strategy is based on the confluence of the two indicators. The characteristics between these two indicators are very different. The way these indicators are configured will make one more reactive to price movements and the other to wait for a little more confirmation before changing direction.
The custom Big Trend indicator is set to 80 periods. This setting is slightly slower than most medium-term moving averages. If you watched how it behaves you would find that it reacts a little slower and waits for further confirmation of the price action before it changes color. This property means that fewer signals are generated with a lower probability.
The custom BS trend indicator, on the other hand, reacts more strongly to price movements than the Big Trend indicator. If you were to compare the two indicators, you would find that the direction would change a few candles sooner than the Big Trend indicator would change color. This indicator allows traders to react quickly as soon as the market changes.
Both indicators have advantages and disadvantages. However, the two indicators are somehow complementary. By combining the strengths of the two indicators, this strategy has a better probability.
Although we are generally looking for a confluence of the two indicators as an entry signal, the Big Trend indicator usually changes direction a little later. Because of this, the Big Trend indicator tends to confirm the change in direction that the BS Trend indicator would initially indicate. Because of this, most of our entries will be on the confirmation of the Big Trend indicator.
However, because the BS trend is more responsive to price movements, you will find that it changes direction before the actual trend reversal. This makes it more useful as an output. Although changing the direction of either indicator would warrant entering into a trade, you will often close a trade based on the BS trend indicator.
Time window: 15-minute, 30-minute, 1-hour, 4-hour, and daily charts
Currency pair: any
Trading session: any
Buy (Long) Trade Setup
- The price should be above the Big Trend indicator line
- The BS trend indicator should print spring green bars
- The Big Trend indicator line should be light blue
- Open a purchase order at the confluence of the above conditions
- Set the stop loss below the Big Trend indicator line
- Close the trade as soon as the BS trend indicator prints a red bar
- Once the Big Trend indicator line changes to tomato color, close the trade
Sell (Short) Trade Setup
- The price should be below the Big Trend indicator line
- The BS trend indicator should print red bars
- The Big Trend indicator line should change to tomato color
- Open a sell order at the confluence of the above conditions
- Set the stop loss above the Big Trend indicator line
- Close the trade as soon as the BS trend indicator prints a spring green bar
- Once the Big Trend indicator line turns light blue, close the trade
This strategy is about the confluence of two complementary moving averages.
This simple strategy, which consists of only two indicators, has dispensed with other filters in order to be able to react more quickly to market changes. Other strategies that try to align the longer-term trend direction with short-term trends tend to wait a little longer. It allows trades with a higher probability, but also causes traders to enter the market a little late.
This strategy goes against this grain. It foregoes the long-term trend, but instead makes money from the immediate changes in the market. While not as likely as other more highly filtered strategies, due to the early entry using these two complementary indicators, it allows for higher reward risk ratios.
Forex Trading Strategy Installation Instructions
The BS Trend Forex Trading Strategy is a combination of Metatrader 4 (MT4) indicator (s) and template.
The essence of this forex strategy is to transform the accumulated history data and trading signals.
The BS Trend Forex Trading Strategy offers the possibility of recognizing various peculiarities and patterns in the price dynamics that are not visible to the naked eye.
Based on this information, traders can assume further price movements and adjust this strategy accordingly.
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How do I install the BS Trend Forex Trading Strategy?
- Download BS Trend Forex Trading Strategy.zip
- * Copy mq4 and ex4 files to your Metatrader directory / Experts / Indicators /
- Copy the tpl file (template) into your Metatrader directory / templates /
- Start or restart your Metatrader client
- Select the chart and timeframe in which you want to test your forex strategy
- Right click on your trade chart and hover over "Template".
- Move right to select BS Trend Forex Trading Strategy
- You will see that the BS Trend Forex trading strategy is available on your chart
* Note: Not all forex strategies come with mq4 / ex4 files. Some templates are already built into the MT4 indicators of the MetaTrader platform.
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