LabTrend is a free Forex scalper indicator for Metatrader 4 and it provides profitable signals for scalpers that work out of the box.
The indicator pops up in the main MT4 chart window in the form of colored red and blue dots.
It’s a beginner-friendly scalper indicator.
Buy & Sell Trade Example
- A blue colored dot is a buy signal.
- A red colored dot is a sell signal.
- Aim for 7-25 pips profit per trade.
The LabTrend indicator can be used for both trade entry and exit or as an additional short-term trend confirmation filter for other strategies and systems.
For scalping, the indicator performs best during the London and New York trading sessions.
The indicator works equally well on all currency pairs (majors, minors and exotic) and shows promising results if used correctly.
Free Download
Download the “labtrend1_v2.mq4” indicator for MT4
Indicator Chart (EUR/USD M1)
The example chart below displays the LabTrend mt4 indicator in action on the trading chart.
Trading Tips:
Feel free to use your own favorite trade entry, stop loss and take profit method to trade with the LabTrend Forex scalper indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Scalper
Does the indicator repaint? No.
MT4 Scalping Strategy Using LabTrend and Trend Power Indicators
This MT4 scalping strategy combines the LabTrend Forex Scalper Indicator MT4 with the Trend Power Metatrader 4 Forex Indicator to catch fast scalping opportunities.
The LabTrend indicator provides precise buy and sell signals with blue and red dots, while the Trend Power line confirms the trend with blue for an uptrend and red for a downtrend.
This method works best on M1, M5, and M15 charts and is suitable for scalpers who want quick trades based on clear trend confirmation.
Buy Entry Rules
- Ensure the Trend Power line is blue, signaling an uptrend.
- Wait for the LabTrend indicator to show a blue dot.
- Enter a buy trade at the close of the signal candle.
- Place the stop loss a few pips below the most recent swing low.
- Close the trade when the LabTrend dot changes color from blue to red, signaling a potential reversal.
Sell Entry Rules
- Ensure the Trend Power line is red, signaling a downtrend.
- Wait for the LabTrend indicator to show a red dot.
- Enter a sell trade at the close of the signal candle.
- Place the stop loss a few pips above the most recent swing high.
- Close the trade when the LabTrend dot changes color from red to blue, signaling a potential reversal.
Advantages
- Combines trend confirmation and precise entry signals for higher probability trades.
- Works well on lower timeframes for fast scalping.
- Using dot color reversal for take profit allows trades to run while locking profits.
- Flexible for multiple currency pairs and active market sessions.
Drawbacks
- Requires constant monitoring since the take profit depends on the dot reversal.
- May give late exits if the market reverses quickly before the dot changes color.
- Not ideal in extremely choppy or ranging markets, where multiple dot flips can trigger early exits.
- Scalpers need discipline to avoid entering trades before both indicators confirm.
Example Case Studies
Case Study 1
On the EUR/USD M5 chart, the Trend Power line turned blue.
A blue dot appeared on the LabTrend indicator, prompting a buy entry at 1.1070 with a stop loss at 1.1060.
The trade was closed when the LabTrend dot changed to red at 1.1085, resulting in a 15 pip profit.
This shows how waiting for the dot reversal can help maximize gains without guessing the take profit level.
Case Study 2
On the GBP/USD M15 chart, the Trend Power line turned red, confirming a downtrend.
A red dot appeared on LabTrend, triggering a sell entry at 1.2520 with a stop loss at 1.2530.
The trade closed when the dot turned blue at 1.2495, netting 25 pips.
This demonstrates the effectiveness of using the dot reversal as a natural exit signal.
Strategy Tips
- Focus on volatile sessions like London and New York for better scalp opportunities.
- Use currency pairs with active movement to avoid getting caught in sideways markets.
- Always wait for both the Trend Power line and LabTrend dot to confirm before entering a trade.
- Dot reversal exit allows capturing extended moves without preset take profit limits.
- Consider using a small trailing stop for additional protection in highly volatile pairs.
