About the Brain Trend Indicator
The Brain Trend Indicator for MT4 is a versatile technical tool designed to pinpoint dynamic support and resistance zones in real time.
Blue dots signify emerging support areas where buyers are likely to step in, while red dots mark resistance ceilings where selling pressure typically increases.
By using the Brain Trend Indicator, traders can identify high-probability breakout points with greater clarity.
The indicator is particularly effective for those who specialize in scalping or fast-paced day trading, as it filters out minor market noise to focus on meaningful price pivots.
When used in alignment with the broader trend, it acts as a reliable filter for finding the path of least resistance.
Free Download
Download the “brain-trend-indicator.ex4” MT4 indicator
Key Features
- Plots real-time support and resistance levels using an intuitive dot-based system.
- Uses blue styled dots to represent support and red styled dots for resistance.
- Optimized for short-term trading techniques including scalping and intraday swings.
- Helps traders identify precise breakout moments when price breaches established boundaries.
- Integrates seamlessly with candlestick patterns and other price action methodologies.
Indicator Chart
The Brain Trend Indicator populates the activity chart with a series of colored markers.
Blue dots form below the price action to represent support, while red dots appear above the price to mark resistance levels.
When the price breaks through these dot-based barriers, it suggests a shift in momentum.
Guide to Trade with Brain Trend Indicator
Buy Rules
- Monitor the price as it approaches a series of red resistance dots.
- Wait for a bullish candle to cross and close decisively above the resistance dots.
- Confirm the upward bias by ensuring the overall trend is bullish on a higher timeframe.
- Initiate a long trade at the start of the next candle following the confirmed breakout.
Sell Rules
- Observe the price action as it nears the blue support dots from above.
- Wait for a bearish candle to cross and close below the support level.
- Verify the downward momentum with additional price action signals like a bearish engulfing pattern.
- Execute a short position once the price has cleared the support dots and closed lower.
Stop Loss
- For buy positions, place the stop loss a few pips below the most recent blue support dots.
- For sell positions, set the stop loss slightly above the most recent red resistance dots.
- Adjust the stop level to reflect current market volatility and protect your capital from spikes.
Take Profit
- Set the take profit at the next major technical level or previous swing extreme.
- Consider exiting the trade if an opposing set of dots begins to form against your position.
- Aim for a profit target that provides a favorable reward-to-risk ratio based on the breakout candle size.
Brain Trend + Gann Trend Oscillator Forex Strategy for MT4
This MT4 strategy combines the support/resistance breakout signals of the Brain Trend indicator with momentum confirmation from the Gann Trend Oscillator MTF.
The Brain Trend indicator marks dynamic support and resistance zones, and trading signals appear when price crosses above or below these zones.
The Gann Trend Oscillator adds a layer of momentum validation: blue bars suggest bullish strength, violet bars indicate bearish pressure.
By combining breakout and momentum signals, this strategy aims to capture strong directional moves with improved probability.
It works best on short to medium timeframes such as M5, M15 or H1, and is suitable for traders who prefer clear, rule-based entries and exits on major currency pairs.
Buy Entry Rules
- Wait until price crosses and closes above a resistance level marked by red dots from Brain Trend.
- Confirm that the Gann Trend Oscillator shows blue bars at or near that close, indicating bullish momentum.
- Open a long trade at the open of the next candle after confirmation.
- Place a stop loss a few pips below the breakout candle low or just under the recently broken resistance level.
- Set take profit based on a risk-reward ratio of 1:2 (for example, if stop loss is 15 pips, aim for 30 pips).
- Alternatively, target the next major resistance zone from higher timeframe charting (H1/H4), whichever yields a larger potential gain.
Sell Entry Rules
- Wait until price crosses and closes below a support level marked by blue dots from Brain Trend.
- Confirm that the Gann Trend Oscillator shows violet bars at or just after that close to validate bearish momentum.
- Open a short trade at the next candle open after confirmation.
- Place a stop loss a few pips above the breakout candle high or just above the broken support level.
- Take profit with a risk-reward ratio of 1:2 or target the next significant support zone on a higher timeframe chart.
Advantages
- The strategy blends breakout signals and momentum confirmation, increasing trade quality.
- The Gann Trend Oscillator helps filter out false breakouts by validating strength before entry.
- Clear stop loss and take profit rules give disciplined risk management.
- The method can work across multiple currency pairs and on different timeframes.
- Suitable for intraday trading and swing-style moves depending on the timeframe and target.
Drawbacks
- In ranging or low-volatility markets price may bounce off support/resistance without follow-through, resulting in breakouts that fail.
- If momentum (Gann Oscillator) lags, you may enter late or miss stronger moves.
- Holding trades to reach higher timeframe zones increases exposure and may require more attention.
Case Study 1
On EURUSD M15 during a European session trend build-up, price closed above a red-dot resistance from Brain Trend.
Simultaneously, the Gann Trend Oscillator turned blue.
A long trade was entered at the next candle open. Stop loss was placed 12 pips below the breakout low.
Price advanced steadily and reached a higher H1 resistance zone about 28 pips above the entry.
The trade yielded +28 pips.
Case Study 2
On USDJPY H1, after a retracement inside a downward swing, price closed below a support marked by blue dots from Brain Trend.
At the same time, the Gann Trend Oscillator showed violet bars.
A short position was opened on the next candle open. Stop loss was placed 18 pips above the breakout high.
Over the next several hours price fell about 40 pips before touching a major support area on the H4 chart.
The trade closed with a 40-pip gain.
Strategy Tips
- If the Gann Oscillator bars switch quickly after entry, consider tightening the stop or partially closing to protect profit.
- Combine take profit zones with structural support/resistance from higher timeframes (H1/H4) for potentially larger moves.
- Keep risk per trade small relative to account size to withstand occasional false breakouts.
- Review trade history periodically and note which pairs and sessions work best with this setup.
Download Now
Download the “brain-trend-indicator.ex4” Metatrader 4 indicator
FAQ
How does the Brain Trend Indicator help with scalping?
The indicator is highly sensitive to short-term momentum, making it perfect for the M1 and M5 timeframes.
Scalpers use the dots to identify very tight support and resistance ranges.
When the price breaks these dots during high-volume sessions, it often results in a quick price extension that scalpers can capitalize on within minutes.
Can the dot periods be adjusted in the settings?
Yes, the indicator settings allow you to fine-tune the sensitivity.
A lower setting will make the dots follow the price more closely, which is ideal for fast intraday moves.
A higher setting will smooth out the levels, providing more significant support and resistance zones for swing traders.
What is the best way to combine this tool with price action?
The most effective approach is to look for candlestick patterns at the dot levels.
For example, if a price breaks above red resistance dots with a strong bullish marubozu candle, the signal is much stronger than a weak breakout.
Summary
The Brain Trend Indicator offers a professional and visually clean method for identifying market turning points.
Automating the placement of support and resistance levels allows Forex traders to react to market shifts without hesitation.
For the best results, always prioritize trades that align with the dominant market trend.
Using the dots as a guide for entries and stop-loss placement creates a disciplined trading environment.
