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.
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