BS Trend Forex Trading Strategy

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BS Trend Forex Trading Strategy 2

BS Trend, it is not what you think it is. BS Trend stands for Buy and Sell Trend. This strategy aims to pinpoint exact entry and exit points using two complimentary indicators that indicate trend direction, entry, and exits. This is a very simple strategy that anyone could use in their trading.

The Big Trend Indicator

There are many different ways to identify trend direction using indicators. Probably one of the most used indicators to help identify trend is the moving average. Almost all traders have some kind of moving average in their system.

Using the moving average indicator alone, there also many different ways to identify trend direction. It could be determined using the location of price in relation to the moving average. It could also be a pair, or a stack of moving averages used by identifying the location of one moving average in relation to another.

Another method of identifying trend using moving averages is by looking at the slope of the moving average. The direction of the slope determines the direction of the trend. If the moving average is sloping up, then the market is said to be bullish. If the slope is going down, then it is bearish. This is sometimes called the Slope Direction Line.

The Big Trend custom indicator works just as the third method would identify the trend, by using the slope of the moving average to determine the trend. It conveniently changes color as soon as the moving average changes direction. Upward sloping lines are colored light blue while downward sloping lines are colored tomato.

The BS Trend Indicator

The BS Trend indicator stands for “buy” and “sell”. This indicator is again another trend-based indicator. It also makes use of moving averages to identify the trend. However, what it does is that it conveniently points where to get in and where to get out of the market. It is much like the traffic light, it tells you when to “go” and when to “stop”. It does this by conveniently printing histograms. Positive histograms that are color spring green indicate a bullish market. Negative histograms are printed red indicating a bearish market.

Trading Strategy Concept

This strategy’s entry and exit is based on the confluence of the two indicators. The characteristics between these two indicators are quite different. The way these indicators are configured makes one more reactive to price action and the other to wait for a bit more confirmation before it changes direction.

The Big Trend custom indicator is set at 80-periods. This setting is a tad slower than most intermediate-term moving averages are set. If you would observe how it behaves, you would see that it responds a bit slower and waits for more confirmation on price action before it changes color. This characteristic makes it produce less low probability signals.

The BS Trend custom indicator on the other hand is more responsive to price action as compared to the Big Trend indicator. If you would compare the two indicators, you would notice that many times, it would change direction a few candles earlier than the Big Trend indicator would change color. This indicator allows traders to respond quickly as soon as the market starts to change.

Both indicators have advantages and disadvantages. However, the two indicators are somehow complimentary. Combining the strengths of the two indicators allow this strategy to have better probability.

Although we are generally looking for a confluence of the two indicators as an entry signal, the Big Trend indicator typically changes direction a bit later. Because of this, the Big Trend indicator tends to confirm the change in direction that the BS Trend indicator would initially show. For this reason, most of our entries will be on the confirmation of the Big Trend indicator.

On the other hand, because the BS Trend tends to react more closely to price action, you would notice that it changes direction prior to the actual reversal of the trend. This makes it more useful as an exit signal. Although a change in direction of any of the two indicators would warrant a closing of a trade, you often find yourself closing a trade based on the BS Trend indicator.

Indicators:

  • Big Trend
  • BSTrend

Timeframe: 15-mins, 30-mins, 1-hour, 4-hour and daily charts

Currency Pair: any

Trading Session: any

Buy (Long) Trade Setup

Entry

  • Price should be above the Big Trend indicator line
  • The BS Trend indicator should print spring green bars
  • The Big Trend indicator line should change to color light blue
  • Open a buy order at the confluence of the above conditions

Stop Loss

  • Set the stop loss below the Big Trend indicator line

Exit

  • Close the trade as soon as the BS Trend indicator prints a red bar
  • Close the trade as soon as the Big Trend indicator line changes to tomato color

BS Trend Forex Trading Strategy 1

BS Trend Forex Trading Strategy 2

Sell (Short) Trade Setup

Entry

  • 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 color tomato
  • Open a sell order at the confluence of the above conditions

Stop Loss

  • Set the stop loss above the Big Trend indicator line

Exit

  • Close the trade as soon as the BS Trend indicator prints a spring green bar
  • Close the trade as soon as the Big Trend indicator line changes to light blue color

BS Trend Forex Trading Strategy 3

BS Trend Forex Trading Strategy 4

Conclusion

This strategy is about the confluence of two complementary moving averages.

This simple strategy, made out of only two indicators, is one that has forgone other filters in order to respond more quickly to market changes. Other strategies that tries to align longer-term trend direction to short-term trends tend to wait a bit longer. It allows for higher probability trades but also tends to cause traders to join the market a bit too late.

This strategy is one that goes against that grain. It forgoes the long-term trend but instead makes money out of the immediate changes in the market. Although it is not as high a probability as other more filtered strategies, it allows for higher reward risk ratios due to the early entry using these two complimentary indicators.


Forex Trading Strategies Installation Instructions

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.

BS Trend Forex Trading Strategy provides an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.

Based on this information, traders can assume further price movement and adjust this strategy accordingly.

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How to install BS Trend Forex Trading Strategy?

  • Download BS Trend Forex Trading Strategy.zip
  • *Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
  • Copy tpl file (Template) to your Metatrader Directory / templates /
  • Start or restart your Metatrader Client
  • Select Chart and Timeframe where you want to test your forex strategy
  • Right click on your trading chart and hover onTemplate
  • Move right to select BS Trend Forex Trading Strategy
  • You will see BS Trend Forex Trading Strategy is available on your Chart

*Note: Not all forex strategies come with mq4/ex4 files. Some templates are already integrated with the MT4 Indicators from the MetaTrader Platform.

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