Brain Trend V.7

Brain Trend V.7 collections of trend following indicators.

General Trading Rules

Outline:

• Buy at strength and sell at weakness

• Be more than willing to take small losses

• Be more than willing to switch positions

• Stick with the big trend till BrainTrading System says to exit

• Always place stops immediately after entering a trade

• Only move stops in the desired direction

• Turn your mental power into profit

How To Use BrainTrading System

BrainTrading System indicator package includes four main independently calculated indicators: BrainTrend1, BrainTrend1Stop, BrainTrend2, BrainTrend2Stop and four auxiliary indicators

used for pictorial presentation of main indicators: BrainTrend1Sig, BrainTrend1StopLine, BrainTrend2Sig, BrainTrend2StopLine.

IMPORTANT!

(BrainTrend1, BrainTrend1Sig, BrainTrend1Stop, BrainTrend1StopLine),

(BrainTrend2, BrainTrend2Sig, BrainTrend2Stop, BrainTrend2StopLine),

(BrainTrend1, BrainTrend1Sig, BrainTrend1Stop, BrainTrend1StopLine, BrainTrend2Sig, BrainTrend2Stop, BrainTrend2StopLine) are priority groups of indicators of the BrainTrading System

BrainTrend1 and BrainTrend2 are market “DIRECTION” indicator. It shows trend direction by colors, when the market changes to or stays in an up-trend, the bars become or remain BLUE. When the market changes to or stays in a downtrend, the bars become or remain RED. When the market goes sideways or is not strong on either side, the bars become or remain GREEN. BrainTrend1 and BrainTrend2 indicators can work with any time bar charts.

IMPORTANT! Don’t use BrainTrend1 and BrainTrend2 indicators on one chart at the same time.

You need to use BrainTrend1 indicator as main on all charts and use BrainTrend2 as confirmative

indicator in separate chart window. 

Figure 1. BrainTrend1 market “DIRECTION” indicator

Figure 2. BrainTrend2 market “DIRECTION” indicator

BrainTrend1Sig and BrainTrend2Sig are semi-system indicators, which integrates the time-proven BrainTrading trading rules and generates BUY or SELL signals.

BrainTrend1Sig will provide a buy signal with a big Cyan dot when buy conditions are met. The value of the big cyan dot is the initial stop for the position. BrainTrend1Sig will provide a sell signal with a big Magenta dot when sell conditions are met. The value of the big dot is the initial stop for the position.

BrainTrend2Sig will provide a buy signal with a big Blue dot when buy conditions are met. The value of the big Blue dot is the initial stop for the position. BrainTrend2Sig will provide a sell signal with a big Red dot when sell conditions are met. The value of the big Red dot is the initial stop for the position.

 Figure 3. BrainTrend1Sig Buy/Sell Signals 

Figure 4. BrainTrend2Sig Buy/Sell Signals

BrainTrend1Stop and BrainTrend2Stop are trend-stop indicators, and are demonstrated by multicolored dots. For distinguishing purposes, BrainTrend1Stop uses Cyan and Magenta dots, and BrainTrend2Stop uses Blue and Red dots.

IMPORTANT!

BrainTrend1StopLine and BrainTrend2StopLine are the same as BrainTrend1Stop and BrainTrend2Stop but in form of Line for pictorial presentation of BrainTrend1Stop and BrainTrend2Stop indicators. You may use these indicators or not.

Both BrainTrend1Stop and BrainTrend2Stop must identify a trend first then begin to paint the dots. This is why you may not see any dots sometimes.

Cyan or Blue Dots below the lows of the bars indicate two things:

(1) the market is in an up-trend;

(2) the values of the Cyan or Blue Dots are the protection stops or the profit target stops (if the position had profit) for the long position. The value of the Cyan or Blue points can be seen in the Data Window after moving your mouse pointer to this indicator point.

The Magenta or Red Dots above the highs of the bars indicate two things:

(1) the market is in a down-trend;

(2) the values of the Magenta or Red Dots are the protection stops or the profit target stops (if the position had profit) for the short position. The values of the Magenta or Red points can be seen in the Data Window after moving your mouse pointer to this indicator point.

Figure 5. BrainTrend1Stop (BrainTrend1StopLine) Stops

 Figure 6. BrainTrend2Stop (BrainTrend2StopLine) Stops

Many studies reveal that it is more difficult to know how to exit the market than to enter the market. One can get into the market at any time if one knows how to get out of the market. BrainTrend1Stop and BrainTrend2Stop are TREND-STOPS indicators which are precisely and objectively defined by the market’s own prices. They help traders enter and stay in the right market direction with minimal risk. You can back test TREND-STOPS with the historical data. Use BrainTrend1Stop and BrainTrend2Stop to enter the market and as trailing stops.

BrainTrend1Stop and BrainTrend2Stop work in very similar ways, but the trend definition and stop calculations are different. BrainTrend2Stop is about 30% more sensitive than BrainTrend1Stop. We recommend you to use BrainTrend2Stop indicator on small time frames (15 minutes or less) as trailing stops and use BrainTrend1Stop to enter the market on this time frame.

Also we recommend you to use BrainTrend2Stop indicator on big time frames (30 minutes or more) as choppy market identificator only and use BrainTrend1Stop indicator on this time frames as entry and exit tool.

Don't trade when there are conflicting stop signals (BrainTrend1Stop and BrainTrend2Stop stop signals above and below the highs and lows of the bars at the same time). Wait for BrainTrend1Stop and BrainTrend2Stop stop signals will be both above or below the highs or lows of the bars. And if you see very many signals on small time frame so use bigger time frames (for example, change your 15-minute time frame for USD/CHF or USD/JPY to 30-minute or more) and use on this big time frames BrainTrend1Sig for signals and BrainTrend1Stop as stoploss line. And we have rule for practically without risk of loss using of our indicators: when you see CYAN dot buy and when you see MAGENTA dot, sell EVEN WITHIN ONE BAR !!! (but we recommend to use this rule for time frames from 30 minutes and higher because if you will use less time frames you will have very many signals within one bar and you will need more time to follow this simple rule).

Figure 7. Conflicting BrainTrend1Stop and BrainTrend2Stop signals

The beauty of BrainTrading System stops is that the stops change along with the market. The stop values are determined by the market’s prices objectively. When you enter the market, the stops will continuously indicate the optimal stops guiding you to lock in your profit, and to approach maximum profits step by step.

All BrainTrading System indicators can work with any time bar charts.

Priority groups of indicators of the BrainTrading System

(BrainTrend1, BrainTrend1Sig, BrainTrend1Stop, BrainTrend1StopLine),

(BrainTrend2, BrainTrend2Sig, BrainTrend2Stop, BrainTrend2StopLine),

(BrainTrend1, BrainTrend1Sig, BrainTrend1Stop, BrainTrend1StopLine, BrainTrend2Sig, BrainTrend2Stop, BrainTrend2StopLine) are priority groups of indicators of the BrainTrading System.

Download BrianTrend 7