This is a trend following indicator. This indicator is best suited for the scalpers since it gives signals very frequently. Within a day, it can give 3 to 5 signals depending on the market swings. It is thus important that if you want to use it to scalp, you should choose a major currency pair. The indicator is displayed on a separate chart below the main chart.
The BS Trend Indicator displays bars on either side of a center line (zero line). The bars that form on the upper side of the zero line are blue in color and represent an uptrend. The bars that form on the lower side of the zero line are purple in color and they represent a downtrend. Therefore the signal is usually the change of the bar color. If the was subsequent formation of blue colored bars and then all of a sudden a purple bar is formed, this means that there is a sell signal and vice versa.
Still on the indicator’s chart, there is a vertical scale that measures from -0.0001 to 0.0001. This scale is not very relevant when trading since the bars formed are equal in length and there is no need of comparing the length of the bars.
The indicator also displays the market trend on the left top corner of the indicator’s chart. It is displayed as a yellow “downtrend” text in case of a down trend and a green “uptrend” when the market trend is upwards.
Fig.1. The BS Trend indicator loadeed on to a trading chart.
This indicator is programmed to take note of even the slightest market movement and it is thus very efficient for the traders who go for even the slightest profits as it is usually the norm with the scalpers.
How to place trades using the BS Trend Indicator.
This indicator is very efficient and once it gives a signal there is no need to wait. When the bar color changes the trader should place an order immediately the next candle starts to form. When it comes to closing the trades, the trader should close the trades when the signal changes (when another signal is given and your trade is still open in the market).
Placing a sell order: the trader should place a sell order when the bars formed are purple. Immediately you notice that the color of the bars in the indicator’s chart have changed from blue to purple, then you should be ready to place a sell. Immediately the next candle on the main trading chart begins to form, place a sell.
Placing a buy order: the trader should place a buy order when the bars formed are blue. Immediately you notice that the color of the bars in the indicator’s chart have changed from purple to blue, then you should be ready to place a buy. Immediately the next candle on the main trading chart begins to form, place a buy. The buy order should then be closed when the color of the indicators bars become purple.
An illustration of placing the trades using the BS Trend Indicator.
Download Free Forex BS Trend Indicator