About the BS Trend Indicator
The BS Trend Indicator for MT4 is a specialized momentum tool designed to highlight short-term market direction through a clean visual interface.
Using the BS Trend Indicator allows you to capitalize on the high volatility typically found during the London and New York sessions.
Because it is optimized for short-term movements, it serves as an excellent filter for scalpers and day traders who want to enter and exit positions within a single session.
The default period of 12 is calibrated for responsiveness, but it remains fully adjustable for those who wish to smooth out the signals for longer-term analysis.
By focusing on the transition of color and position, you can stay aligned with the immediate flow of capital.
Free Download
Download the “bstrend-indicator.mq4” MT4 indicator
Key Features
- Displays trend-following signal bars in a dedicated window to keep the main chart clear.
- Uses a simple color-coded system with blue for bullish and magenta for bearish trends.
- Includes a central zero-level threshold to confirm the overall directional bias.
- Features a real-time trend status text in the upper corner for instant recognition.
- Adjustable input period to fine-tune the indicator sensitivity to current market volatility.
- Optimized for low-spread pairs during peak trading hours for maximum efficiency.
Indicator Chart
The BS Trend Indicator appears in a separate window below the price candles.
It features vertical bars that change color based on the prevailing momentum.
Blue bars positioned above the 0.00 level signal a clear bullish trend, while magenta bars below the 0.00 level signal a bearish trend.
Guide to Trade with BS Trend Indicator
Buy Rules
- Monitor the indicator window for a change in bar color from magenta to blue.
- Confirm that the blue bars are forming and closing above the 0.00 level.
- Look for the price on the main chart to be making higher lows for additional confirmation.
- Open a long position as soon as the first blue bar is fully established.
Sell Rules
- Watch for the signal bars to shift from blue to magenta.
- Ensure the magenta bars are positioned and closing below the 0.00 level.
- Verify that the current price action shows signs of bearish pressure or resistance.
- Execute a short trade when the color change to magenta is confirmed on the candle close.
Stop Loss
- Place the stop loss a few pips below the most recent swing low for buy trades.
- Position the stop loss above the nearest swing high for sell trades.
Take Profit
- Target a fixed profit level that offers at least a 1:1.5 reward-to-risk ratio.
- Exit the position immediately if the bar color changes to the opposite direction.
BS Trend Indicator + Zero Lag MACD Scalping Strategy for MT4
This MT4 scalping approach mixes momentum color changes from the BS Trend Indicator with trend confirmation from the Zero Lag MACD.
The goal is to create a simple framework that reacts quickly to short bursts of movement.
The BS Trend reveals when the market shifts direction, while the Zero Lag MACD shows whether momentum supports that shift.
Because the system filters entries through two conditions, traders can catch fast moves with more confidence.
The strategy works best on lower time frames like M1, M5 and M15, especially during active sessions where price moves smoothly.
Scalpers who want quick entries and exits without complex chart setups will find this method practical and easy to apply.
Buy Entry Rules
- Enter a buy when the BS Trend changes from magenta to blue.
- The Zero Lag MACD histogram must be above 0 at the time of entry.
- Place the stop loss under the latest swing low.
- Take profit at the next resistance or use a fixed 10 to 20 pip target.
Sell Entry Rules
- Enter a sell when the BS Trend changes from blue to magenta.
- The Zero Lag MACD histogram must be below 0 at the time of entry.
- Place the stop loss above the recent swing high.
- Take profit at the next support or target 10 to 20 pips.
Advantages
- Zero Lag MACD gives smoother, quicker confirmation.
- Works well during sessions with directional momentum.
- It can be used on several pairs without chart overload.
Drawbacks
- Signal quality depends heavily on market conditions.
- Fast spikes can hit the stop loss before the trend continues.
- The system offers limited value for swing trading because it is built for short bursts of movement.
Case Study 1
During the New York session on EURUSD M5, the BS Trend switched from magenta to blue after a period of mild consolidation.
At the same moment, the Zero Lag MACD histogram climbed above 0.
A buy trade was opened with a stop loss placed under a nearby swing low.
Momentum increased as buyers took control and the pair moved upward.
The position closed near a resistance level for a gain of about 17 pips.
Case Study 2
On USDJPY M1, the BS Trend changed from blue to magenta after a clean micro pullback.
The Zero Lag MACD histogram was fully below 0, confirming downward pressure.
A sell position was triggered and price continued falling for several consecutive candles.
The stop loss was placed above the previous swing and take profit was set at a small support level.
The trade closed with roughly 13 pips of profit in a short burst.
Strategy Tips
- Focus on sessions with clean liquidity such as London open or New York morning.
- Avoid trading when the Zero Lag MACD histogram stays flat around the zero line.
- Do not enter trades if the BS Trend changes color inside a tight consolidation range.
- Use a fixed stop loss and avoid widening it during volatility spikes.
- Consider closing trades early when price stalls near support or resistance zones.
Download Now
Download the “bstrend-indicator.mq4” Metatrader 4 indicator
FAQ
What are the best trading sessions to use the BS Trend Indicator?
The indicator is most effective during the London and New York overlaps.
These sessions provide the liquidity and momentum necessary for the signal bars to show clear, sustained trends.
Using it during the Asian session or quiet bank holidays may lead to more frequent color changes without significant price movement.
Can I change the sensitivity of the BS Trend Indicator signals?
Yes, the period setting in the inputs tab is fully customizable.
The default setting is 12, which is great for fast-paced trading.
If you find the signals are appearing too frequently for your style, increasing the period will smooth out the bars and provide signals for longer-term moves.
Is the BS Trend Indicator suitable for scalping on the M1 timeframe?
It is a very popular choice for scalpers on the M1 and M5 timeframes.
Because it reacts quickly to price changes, it helps identify the small momentum waves that scalpers rely on.
However, always ensure you are trading pairs with tight spreads to keep your trading costs low.
Summary
The BS Trend Indicator provides a robust and visually intuitive way to follow market trends.
By translating complex momentum calculations into simple blue and magenta bars, it removes the guesswork from technical analysis.
Its primary strength lies in its ability to highlight short-term opportunities, making it a valuable asset for anyone focused on intraday price action.
To get the most out of this tool, it is recommended to use it as an entry trigger within a broader trading plan.
Combining these signals with support and resistance levels can significantly increase your success rate.
