Acceleration Bands Forex Strategy

The Acceleration Bands forex strategy tries to take advantage of strong rally or sell-off points in the market and profit from such.

The strategy combines the Acceleration_Bands.ex4 custom indicator alongside the buysellpips.ex4 custom indicator.

Chart Setup

MetaTrader4 Indicators: Acceleration_Bands.ex4 (default setting), buysellpips.ex4 (default setting)

Preferred Time Frame(s): 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, Daily

Recommended Trading Sessions: Any

Currency Pairs: USD/CHF, EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CAD, NZD/USD, EUR/CHF

Download

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Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a buy in the market if the following indicator or chart pattern gets displayed:

  • If two consecutive price bars closes outside the outer upper Acceleration_Bands.ex4, it is a signal to go long i.e. a bullish signal.
  • If the buysellpips.ex4 custom indicator forms a yellow upward pointing arrow within its indicator window that is followed by a dotted lime line. This indicates a bullish push for the currency pair of focus.

Stop Loss for Buy Entry: Place stop loss below the lower red band.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit on position(s) if the following conditions hold sway in the market:

  • If price re-enters the outer upper Acceleration_Bands.ex4 and closes inside or below it as shown on Fig. 1.0, price is said to be taking a reversal, thereby prompting an exit or take profit.
  • If the Acceleration_Bands.ex4 forms a downward pointing yellow arrow, it is a trigger to exit or take profit accordingly.

Sell Entry Rules

Enter a sell in the market if the following rules or conditions holds true:

  • If two consecutive price bars closes outside the outer lower Acceleration_Bands.ex4, it is a signal to go short i.e. a bearish signal.
  • If the buysellpips.ex4 custom indicator forms a yellow downward pointing arrow within its indicator window that is followed by a dotted red line. This is a trigger to go short on the currency pair of focus.

Stop Loss for Sell Entry: Place stop loss above the upper red band.

Exit Strategy/Take Profit for Sell Entry:

Exit or take profit on position(s) based on the following rules or conditions:

  • If price closes above the outer lower Acceleration_Bands.ex4, it is a signal to exit or take profit as shown on Fig. 1.1.
  • If a yellow upward pointing arrow forms on the buysellpips.ex4 custom indicator dotted line, it is a trigger to exit or take profit.

Fig. 1.1

Free Download

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About The Trading Indicators

The Acceleration_Bands.ex4 custom indicator was developed by Price Headley to allow for the plotting of upper and lower envelope bands around a simple moving average.

The indicator gauges an instrument’s typical volatility over a setting of 20 bars. Users are able to tweak the inputs on the parameter settings like the value for the “factor,” “smPeriod,” and “smMethod” variable.

The BuySellPips.ex4 custom indicator captures trends via its yellow upward or downward pointing arrow with an attached dotted lime or red line to signal a buy or sell.

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