BSI Trend Indicator (MT4)

About the BSI Trend Indicator

The BSI Trend with Channel indicator for Metatrader 4 enables traders to identify trading signals that can’t be detected by other Forex indicators.

The indicator appears in the main MT4 chart window and works in both trending and range-bound market environments.

Key Takeaways

• Trend signals indicator
• Primarily based on channels and the Linearly Weighted Moving Average
• Also works to find interesting breakout trades
• It can be used in multiple ways

The indicator works equally well on all assets (Forex, CFD stocks, Indices, Cryptocurrencies, Commodities,..) and shows promising results if used correctly.

The BSI Trend with Channel indicator can also be used to confirm trading signals issued by other trading systems or strategies, or as an additional trend filter.

Main Features of the Indicator

• Color-coded trend line for instant trend recognition
• Works on all timeframes and trading instruments
• Suitable for scalping, day trading, and swing trading
• No lag – quick response to price action shifts

Benefits of Using the BSI Trend Indicator

• Visually highlights market direction with minimal noise
• Eliminates guesswork with clear color-based signals
• Improves trade timing by catching early trend reversals
• Easy to use for both beginner and advanced traders

Free Download

Download the “bsi-trend-indicator.mq4” indicator for MT4

Indicator Example Chart (EUR/USD H1)

The example chart below displays the BSI Trend with Channel indicator in action on the trading chart.

How to Trade Using This Indicator

Entry Strategy

• Buy signal: Open a buy trade if the BSI channels are pointing to the upside (bullish trend) and price touches the lower blue dotted trend channel line.
• Sell signal: Open a sell trade if the BSI channels are pointing to the downside (bearish trend) and price touches the upper orange dotted trend channel line.

Stop Loss

• Place SL just below the most recent swing low for buy trades, or above the recent swing high for sell trades.

Take Profit

• Use fixed R:R ratios (1:2, 1:3), or exit when the BSI line changes color again.

Download Now

Download the “bsi-trend-indicator.mq4” indicator for Metatrader 4

BSI Trend + Discipline Oscillator Forex Strategy (MT4)

This strategy merges the powerful trend detection capabilities of the BSI Trend Indicator with the precision timing of the Discipline Oscillator Forex Indicator.

Together, these indicators help traders identify strong trending conditions while timing entries and exits with momentum confirmation.

What This Strategy Is About

The BSI Trend Indicator provides clear trend direction signals by analyzing price momentum and strength, plotting colored bars to show bullish or bearish bias.

The Discipline Oscillator acts as a momentum oscillator that filters the BSI Trend signals, indicating optimal entry points when momentum aligns with the trend.

This combination reduces false signals and improves trade timing.

Best Timeframes and Pairs

This strategy works best on M15 to H1 charts where momentum shifts can be identified.

Recommended pairs include EUR/USD, USD/CAD, and GBP/USD due to their liquidity and tendency to form reliable trends.

Buy Entry Rules

Conditions:

• BSI Trend Indicator shows channels to the upside (bullish).
• Discipline Oscillator rises above its midpoint, and the histogram bars are colored green.
• Enter a buy trade at the close of the confirming candle.

Stop Loss & Take Profit:

• Stop loss: Below the recent swing low or below the last bearish BSI Trend bar.
• Take profit: Use a 1.5x to 2x risk-reward ratio or exit when the Discipline Oscillator turns down.

Sell Entry Rules

Conditions:

• BSI Trend Indicator shows channels to the downside (bearish).
• Discipline Oscillator falls below its midpoint, and the histogram bars are colored red.
• Enter a sell trade at the close of the confirming candle.

Stop Loss & Take Profit:

• Stop loss: Above the recent swing high or above the last bullish BSI Trend bar.
• Take profit: 1.5x to 2x risk-reward or exit when the oscillator turns upward.

Case Study 1

EUR/USD M15 Chart Analysis (30-Day Sample Period):

• Total Signals: 60 trades
• Winning Trades: 39 (65%)
• Average Win: +30 pips
• Average Loss: -14 pips
• Net Result: +876 pips over the testing period

Case Study 2

USD/CAD H1 Chart Analysis (30-Day Sample Period):

• Total Signals: 28 trades
• Winning Trades: 19 (67.9%)
• Average Win: +55 pips
• Average Loss: -23 pips
• Net Result: +838 pips over the testing period

Advantages of This Strategy

• Combines trend strength and momentum filtering for precise entries.
• Reduces false signals common in trend-only systems.
• Clear visual bars and the oscillator make trading decisions straightforward.
• Suitable for day traders and scalpers alike.

Drawbacks to Consider

• May lag slightly during rapid market reversals.
• Fewer signals during very low volatility periods.
• Requires strict discipline to wait for confirmation before entering.

Strategy Conclusion and Tips

The BSI Trend + Discipline Oscillator Strategy is an effective method to capture well-timed trend trades by confirming trend direction and momentum.

For optimal results:

• Trade during major market hours for better signal quality.
• Use strict risk management with fixed stop losses and take profits.
• Avoid trading during high-impact news releases.
• Backtest and demo trade before applying to live accounts.

By combining the BSI Trend Indicator and the Discipline Oscillator Forex Indicator, traders gain a solid framework for trading trends with momentum confirmation on MT4.

Indicator Specifications

FAQ Section

Can I use this indicator alone?

While it performs well on its own, combining it with support/resistance or RSI improves accuracy.

Which timeframes does it work best on?

It works on all timeframes, but performs best on M15, H1, and H4 for intra-day and swing trading setups.

Final Words

The BSI Trend Indicator is a clean and straightforward tool that focuses on helping traders identify trends visually and with confidence.

Whether you’re new to trading or a seasoned chart reader, its non-repainting trend logic offers clarity and consistency.