The Bykov Trend Signals MT4 indicator is based on the Bykov formula and draws trend following buy and sell arrows on the chart.
An Aqua up-pointing arrow indicates a long trade opportunity while an magenta down pointing arrow indicates a short trade opportunity.
The default Bykov Trend SSP setting is set to 5, but can be changed to whatever value you want.
If you want to use this trend following indicator as a stand-alone, change the SSP setting to at least 50 and above.
By doing so, the signals will come slower but will be much more reliable.
Experiment with this important indicator setting.
For scalping and day trading, use the M5 and M15 trading charts during the London and New York trading sessions.
For swing trading, use the Bykov forex indicator on the H1, H4 and D1 trading charts.
Free Download
Download the “bykovtrend-sig.mq4” MT4 indicator
Indicator Chart (USD/JPY M15)
The USD/JPY M15 chart below displays the Bykov Trend Signals Metatrader 4 indicator in action.
Basic Trading Signals
Signals from the Bykov Trend Signals Metatrader 4 forex indicator are easy to interpret and go as follows:
Buy Signal: Go long when the indicator paints an aqua buy arrow on the activity chart.
Sell Signal: Go short when the indicator paints a magenta sell arrow on the activity chart.
Trade Exit: Close the open buy/sell forex position when an opposite signal occurs, or use your own method of trade exit.
Bykov Trend Signals and Zero Lag Moving Average Strategy MT4
This MT4 trading strategy uses the Bykov Trend Signals Indicator to provide entry arrows and the Zero Lag Moving Average Indicator to filter trend direction.
The strategy focuses on taking trades that align with the prevailing trend.
When price stays above the Zero Lag Moving Average, the trend is bullish and only buy signals are taken.
When price stays below the Zero Lag Moving Average, the trend is bearish and only sell signals are considered.
This strategy works well on M15 and H1 charts for both intraday and swing trading.
It helps traders avoid counter-trend trades and capture moves that travel further in the direction of momentum.
Signals are easy to spot and rules are straightforward, making the strategy suitable for all experience levels.
Buy Entry Rules
- Ensure price is above the Zero Lag Moving Average, indicating a buy trend.
- Wait for a blue arrow from the Bykov Trend Signals Indicator.
- Enter a buy trade when the blue arrow appears while price remains above the Zero Lag MA.
- Set stop loss below the recent swing low or below the moving average line.
- Set initial take profit at the next resistance level or use a 1:1.5 reward-to-risk ratio.
Sell Entry Rules
- Ensure price is below the Zero Lag Moving Average, indicating a sell trend.
- Wait for a magenta arrow from the Bykov Trend Signals Indicator.
- Enter a sell trade when the magenta arrow appears while price remains below the Zero Lag MA.
- Set stop loss above the recent swing high or above the moving average line.
- Set initial take profit at the next support level or use a 1:1.5 reward-to-risk ratio.
Advantages
- Trend confirmation from the Zero Lag Moving Average helps reduce false entries.
- Clear entry arrows make trade decisions simple and quick.
- Easy to apply on multiple time frames, especially M15 and H1.
- Works well with major currency pairs that show strong trends.
- Combines trend filtering with precise entry timing.
- Suitable for both intraday and swing trading styles.
- Helps focus trades in the direction of dominant momentum.
- Visual signals reduce guesswork and emotional trading decisions.
Drawbacks
- The strategy can give late entries during fast market moves.
- Sideways or range-bound markets may produce multiple false arrows.
- Requires patience to wait for trend confirmation before entering trades.
- May need wider stops during high volatility sessions.
- Profit targets may need adjusting according to pair volatility.
Case Study 1
On EURUSD H1, price was above the Zero Lag Moving Average, indicating a strong uptrend.
A blue arrow from the Bykov Trend Signals Indicator appeared at 1.0920.
A buy trade was opened with a stop loss at 1.0895 below the swing low.
Price continued upward to 1.0970 before pulling back, resulting in a 50-pip gain.
Trend alignment and a clear signal helped capture a strong rally during the London session.
Case Study 2
On USDJPY M15, price was below the Zero Lag Moving Average, signaling a downtrend.
A magenta arrow appeared at 149.35.
A sell trade was entered with a stop loss above the recent swing high at 149.65.
Price continued downward to 148.90, capturing 45 pips before finding support.
Using the moving average to confirm the trend prevented a counter-trend entry.
Strategy Tips
- Use the moving average as dynamic support or resistance when adjusting stop loss or take profit.
- Consider moving the stop loss to break even once the trade moves in your favor by half the take profit distance.
- Keep a trade journal to review performance and refine entry timing over time.
- Backtest the strategy on multiple pairs to understand how different volatility affects outcomes.
- Focus on major pairs like EURUSD, GBPUSD, and USDJPY for more predictable trend behavior.
- Adjust take profit levels based on recent price action rather than fixed pip targets only.
Download Now
Download the “bykovtrend-sig.mq4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (Risk, SSP, CountBars) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: Trend
