Braid Filter Indicator: Three Averages And One Gate

Written by Dominic Walsh · Published 30 Jul 2026 · Last updated 21 Sep 2026

The braid filter indicator answers whether the market is worth trading at all. Three averages get compared. When they braid together the histogram turns grey, and grey means stand aside rather than pick a side.

This build ships as a compiled .ex4 for MT4 and .ex5 for MT5; the screenshots below come from EURUSD H1.

Platforms	MT4 (.ex4) + MT5 (.ex5)
Chart window	Separate window
Plots	4: Braid Bull, Braid Bear, Braided (no trade), ATR Filter
Alerts	popup, push notification, email, sound
Inputs	11

The plots and where they sit

`Braid Bull` fills lime green columns when the fast strand leads.

`Braid Bear` fills red columns when it trails.

`Braided (no trade)` fills slate gray whenever the spread is too small.

A gold `ATR Filter` line marks the threshold the spread must clear.

• Braid Bull: histogram, lime green, width 3
• Braid Bear: histogram, red, width 3
• Braided (no trade): histogram, slate gray, width 3
• ATR Filter: line, gold, width 2

What happens behind it

Three strands, three prices

`InpPeriod1` `3` runs on the close, `InpPeriod2` `7` runs on the open and `InpPeriod3` `14` anchors it as a simple average. Using different source prices is what lets them separate at all.

Spread is the reading

The column height is the distance between the highest and lowest of the three, converted into points. Wide means the three disagree, and disagreement is what a trend looks like here.

The gate is a share of range

`InpFilterStrength` `40.0` percent of the reading from `InpAtrPeriod` `14` becomes the gold line. A column under that line gets the grey colour instead of a direction.

How to judge the output

Grey is the important colour, because it says the setup is absent.

A column rising off the gold line is the tool turning on.

Colour alone gives direction, and height gives conviction.

The pane reads in points, so the scale changes with the instrument.

Alert channels in this build: popup, push notification, email and sound, one message per closed bar.

`EnableAlerts` covers four routes and arrives true with `EnablePopup`. `EnablePushNotify` reaches a mobile device, `EnableEmail` sends mail and `EnableSound` plays `SoundFile`. Those three ship off. A state change reports once per bar.

Every Braid Filter Indicator input

Core settings

Setting	What it does	Default
InpPeriod1	Strand 1 period (EMA of close, fast). Strand one, an exponential average of the close, default `3`.	3
InpPeriod2	Strand 2 period (EMA of open, mid). Strand two, an exponential average of the open, default `7`.	7
InpPeriod3	Strand 3 period (SMA of close, anchor). Strand three, a simple average anchor, default `14`.	14
InpAtrPeriod	ATR period for the filter. Window behind the gate, default `14`.	14
InpFilterStrength	Filter strength (% of ATR). Percent of range the spread must clear, default `40.0`.	40.0

Alert settings

Setting	What it does	Default
EnableAlerts	Master toggle across every route, default `true`.	on
EnablePopup	MetaTrader dialog on a state change, default `true`.	on
EnablePushNotify	Mobile notification on a state change, default `false`.	off
EnableEmail	Mail on a state change, default `false`.	off
EnableSound	Clip on a state change, default `false`.	off
SoundFile	(see inputs panel)	alert.wav

Markets and timeframes

The gate is relative to range, so it travels between instruments. EURUSD H1 is the reference chart, where grey stretches cover much of the Asian session. On M5 the state flips often. H4 gives long, clear runs.

The catch

A spread reading says nothing about which way the trend will go next.

`InpFilterStrength` `40.0` is a single threshold, so a spread just under it reads as nothing.

Three averages on three different prices is unusual and hard to reason about.

Copy the compiled Braid Filter Indicator file into your MQL4/Indicators folder, and the MT5 build into MQL5/Indicators, then restart the terminal and drag it onto a chart. The step-by-step guide with screenshots is at how to install MT4 and MT5 indicators.

Background reading on the method behind the Braid Filter Indicator: Payment schedule on Wikipedia, Trendtrading at Investopedia.

Download the Braid Filter Indicator for MT4 and MT5

The zip holds the compiled Braid Filter Indicator build for MT4 and MT5, plus a short README. Compiled files only, no source. Enter your email below and the download link arrives in your inbox.

FAQ

Why does InpPeriod2 average the open?

So the three strands can separate. Averaging the close three times over different windows produces lines that track each other closely. Mixing open and close makes the braid loosen faster when direction changes.

What does InpFilterStrength 40.0 gate?

The spread between the three averages, measured against forty percent of the fourteen-bar range reading. Below that line the columns turn grey, which is the build saying conditions are too tight.

Is the Braided colour a sell signal?

No, it is an absence of signal. Grey means the three averages sit too close together for the tool to call a direction, which is a reason to wait rather than a reason to trade either way.

How do I make InpFilterStrength stricter?

Raise `InpFilterStrength` above forty. At sixty or seventy the tool spends far more time grey and only calls the strongest separations, which suits traders who want fewer and cleaner states.

Are results guaranteed?

No. Trading involves risk. Results are not guaranteed; past performance is not indicative of future results. Use the Braid Filter Indicator as one input. Always backtest before trading live.