Angle Bands Forex Trading Strategy

The forex market is a difficult place to survive, regardless some traders are still able to keep being in profits.

One of the ways in which they are to do this is their ability to successfully deploy forex trading indicators.

Forex indicators make us understand that the market is not a random place!

The Angle Bands forex trading strategy uses a fine blend of simple to read, yet profitable technical FX indicators to define buy and sell price action.

Chart Setup

MetaTrader4 Indicators: MA_BBands.ex4 (Inputs Variable Modified; MAPeriod=18, OsMA=9), MAAngle.ex4 (Inputs Variable Modified; MAPeriod=55)

Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day

Recommended Trading Sessions: Any

Currency Pairs: Any pair

Download

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Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Initiate a buy entry if the following indicator or chart setup gets put on display:

  1. If blue upward pointing arrow of the MA_BBands.ex4 custom indicator gets placed slightly below the candlesticks as shown on Fig. 1.0, it is an indication of upward price pressures, hence a trigger to go long is recommended. Also watch how the bands widens following a session of contraction, after which price is seen to trade along the upper outer aqua line of the MA_BBands.ex4 indicator.
  2. If the yellow and lime green histograms of the MAAngle.ex4 custom indicator gets placed above the 0.00 level, it is an indication of a bullish sentiment i.e. a trigger to buy the designated forex pair.

Stop Loss for Buy Entry: Place stop loss 3 pips below short-term support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions takes precedence:

  1. If while a buy signal is ongoing, the red downward pointing arrow of the MA_BBands.ex4 custom indicator pops up fairly above the candlesticks as seen on Fig. 1.0, an exit or take profit is advised.
  2. If the MAAngle.ex4 custom indicator forms a yellow histogram below the 0.00 level, it is pointing to weaning bulls power, hence an exit or take profit will suffice.

Sell Entry Rules

Enter a sell order if the following holds true:

  1. If red downward pointing arrow of the MA_BBands.ex4 custom indicator gets placed fairly above the candlesticks as seen on Fig. 1.1, it is an indication of downward price pressures, hence a sell trigger is on the horizon. Also watch out how the bands widens following a session of contraction, after which price is seen to trade along the lower outer magenta line of the MA_BBands.ex4 indicator, a move that further supports our sell signal.
  2. If the yellow and fire brick histograms of the MAAngle.ex4 custom indicator gets placed below the 0.00 level, the prevalent sentiment is said to be bearish i.e. a trigger to sell the designated currency pair.

Stop Loss for Sell Entry: Place stop loss 3 pips above short-term resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If while a sell signal is running, the blue upward pointing arrow of the MA_BBands.ex4 custom indicator pops up slightly below price bars as depicted on Fig. 1.1, an exit or take profit is recommended.
  2. If the MAAngle.ex4 custom indicator forms a yellow histogram above the 0.00 level, it is pointing to halting bears power, hence an exit or take profit will do.

Sell Trade Example

Fig. 1.1

Free Download

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About The Trading Indicators

The MA_BBands.ex4 custom indicator is a combination of MA channels and Bollinger Bands.

It is essentially a signal indicator that deploys the mechanism of the moving averages.

The MAAngle.ex4 custom indicator depicts the moving average slope angle in degrees.

The indicator is of huge advantage to traders who aggressively deploy the moving average indicator for trading.

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