This is the NO REPAINT version with new algorithm, it also comes with alert.
In the original version, signal on current bar will always change until the Close price is fixed.
By NO REPAINT, it means the last/current signal will never change.
With this MTF version BrainTrend, you can apply any time frame of BrainTrend to your current chart.
As long as the selected MTF time frame is greater than the chart time frame.
Some examples of putting multiple time frames into use would be:
A
swing trader, who focuses on daily charts for his or her decisions,
could use weekly charts to define the primary trend and 60-minute charts
to define the short-term trend.
A
day trader could trade off of 15-minute charts, use 60-minute charts to
define the primary trend and a five-minute chart (or even a tick chart)
to define the short-term trend.
A
long-term position trader could focus on weekly charts while using
monthly charts to define the primary trend and daily charts to refine
entries and exits.
Source: http://www.investopedia.com
BrainTrend is a very popular Indicator, the calculation is based on Stochastic Oscillator and Average True Range (ATR).
- Stochastic Oscillator is based on the observation that as prices increase, closing prices tend to be closer to the upper end of the price range. In downtrends, the closing price tends to be near the lower end of the range.
- ATR calculates the average of true price ranges over a time period. The True Price Range is defined as the greatest of distances between today’s high to today’s low, yesterday’s close to today’s high, and yesterday’s close to today’s low. The Average True Range is a moving average of the True Range over a specified period of time.
BrainTrend
will provide a buy signal with a big Cyan dot when buy conditions are
met. The value of the big cyan dot is the initial stop for the position.
BrainTrend will provide a sell signal with a big Magenta dot when sell
conditions are met. The value of the big dot is the initial stop for the
position.
It
shows trend direction by colors, when the market changes to or stays in
an up-trend, the bars become or remain Cyan. When the market changes to
or stays in a downtrend, the bars become or remain Magenta. When the
market goes sideways or is not strong on either side, the bars become or
remain Cyan.
Cyan Dots below the lows of the bars indicate two things:
(1) the market is in an up-trend;
(2) the values of the Cyan Dots are the protection stops or the profit
target stops (if the position had profit) for the long position.
The Magenta Dots above the highs of the bars indicate two things:
(1) the market is in a down-trend;
(2) the values of the Magenta Dots are the protection stops or the
profit target stops (if the position had profit) for the short position.
Entry
points are also effected by the settings of the time frame. The longer
the time frame, the higher the accuracy. The time frame controls the
trading frequency too.
Generally, use the longer time frame to determine the direction that you want to enter; use the shorter time frame to pinpoint the entry.
For example, you may use 1-hour chart to guide the direction and use 15-min chart for entry or exit for daytrading.
This method has a great advantage of getting better filled for position
trading. Use the longer time frame, such as the 4-hour bar, to determine
the direction, and use a short time frame, such as 1-hour or 30 minute,
to determine the entry point. For example, if the 4-hour bar is cyan,
prepare to buy, but wait for the 1-hour or 30 minute bar to turn
Magenta. Estimate the normal retracement duration for your market. If
the normal retracement duration is 4 bars on the 30 minute chart, then
wait for 4 Magenta bars, and if the 4th Magenta bar does not penetrate
the BrainTrade stop, enter a long position at the market. You get a
better filled price as well as a favorable market position, since the
market did not penetrate the stop after a normal retracement period. You
may use 4-hour chart to guide the direction and use 1-hour chart for
entry or exit for position trading. Wait the market pulling back, but
not penetrating the BrainTrade stops to enter.
You need to decide for yourself, though typically the best time is about
4 to 8 bars. Avoid entering the market near the current high or long
term Resistance Line, even when you get a buy signal from short term
chart and confirmed by long-term chart.
The
trading tips revealed here are intended to enhance your winning
probability. Any trading rules, however, have certain limitations based
on which market you refer to, what kind of confirmations you are using,
what time frame is being used, and so on. You need to test the rules
with your specific market before applying to real trading. To apply
BrainTrade indicators with consideration of different market conditions
is very important.
BrainTrade
is ideal for both day trading and position trading. BrainTrade help you
to focus on the most essential information on markets. BrainTrade
indicators provide market directions, provide trend and stops, provide
buy and sell signals. With BrainTrade you now have immediate access to
the river of information about the major trend changes, buy and sell
signals, and stops for large number of market symbols. BrainTrade is
revolutionizing the very nature of trading. People have lived for so
long without information at their fingertips that they don’t realize
what they’re missing.
Parameters available for you to adjust the BrainTrend Indicator.
- timeframe: choos your desired timeframe.
- stoch_period
- stoch_max
- stoch_min
- atr_current_norm_factor
- atr_before_norm_factor
- atr_period
- atr_before_step
Since there already are many explaination and details about this indicator, we don’t repeat it here.
It works on all time frame and all markets(Stocks, Futures, Forex, Options,ETF, etc.)
You can set up alerts based on this indicator’s plot, if you want to get alert when the buy signal appears, you can use the following settings.