Bands Forex Trading System

The Bands Forex Trading system is a robust trading system that is unique and profitable at the same time.

This FX system takes advantage of market volatility along with support and resistance levels.

The Bands system works for any currency pair and timeframe of your preference.

Let’s get started:

Chart Setup

MetaTrader4 Indicators: Bands.ex4 (Colors Width Modified; #0=2, #1=2, #2=2), stlm-histogram.ex4 (Inputs Variable Modified; CountBars=3000000), stochastic-signals-mtf.ex4 (Inputs Variable Modified; K=42, D=9, S=24)

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

Recommended Trading Sessions: Any

Currency Pairs: Any pair

Download

Download the Bands Forex Trading System

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a bullish trade if the following indicator or chart pattern gets put on display:

  1. If price opens and closes above the light sea green middle line of the Bands Metatrader 4 forex indicator following its expansion, while trading along the upper outer band of the indicator (see Fig. 1.0), price is said to be rising i.e. a trigger to go long on the selected currency pair.
  2. If the green & red histograms of the stlm-histogram indicator stay above the zero signal level as indicated on Fig. 1.0, price is said to be pressured higher, therefore a buy signal is appropriate.
  3. If the lime upward pointing arrow of the stochastic-signals-mtf indicator pops up within the indicator window as depicted on Fig. 1.0, the general market sentiment is said to be bullish i.e. a trigger to go long on the desired currency pair.

Stop Loss for Buy Entry: Place stop loss 3 pips below the lower band.

Exit Strategy/Take Profit for Buy Entry

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

  1. If price opens closes below the middle light sea green line of the Band indicator while a bullish trend is ongoing (refer to Fig. 1.0), an exit or take profit is duly advised.
  2. If while a bullish trend is ongoing a red histograms of the stlm-histogram indicator pops up below the 0.00 signal line, it is an indication to exit or take profit at once.
  3. If while a bullish trend is running, the stlm-histogram displays a red downward pointing arrow, bulls power is said to be weaning i.e. a trigger to exit or take profit forthwith.

Sell Entry Rules

Go short if the following setups gets displayed successfully on the activity chart:

  1. If price opens and closes below the middle light sea green line of the Bands indicator following its expansion, while trading along the lower outer band of the indicator (check Fig. 1.1), price is said to be dipping i.e. a trigger to go short on the designated fx pair.
  2. If the red & green histograms of the stlm-histogram indicator stay below the zero signal level as depicted on Fig. 1.1, price is said to be pushed lower, therefore a sell alert will suffice.
  3. If the red downward pointing arrow of the stochastic-signals-mtf indicator pops up within the indicator window as exemplified on Fig. 1.1, the overall market sentiment is said to be bearish i.e. a trigger to go short on the forex pair of focus.

Stop Loss for Sell Entry: Place stop loss 3 pips above the upper band.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If price opens closes above the middle light sea green line of the Band indicator during a bearish trend as shown on Fig. 1.1, an exit or take profit is duly recommended.
  2. If while a bearish trend is ongoing a green histograms of the stlm-histogram indicator pops up above the 0.00 signal level, it is a signal to exit or take profit straightaway.
  3. If while a bearish trend is ongoing, the stlm-histogram displays a lime upward pointing arrow, bears power is said to be diminishing, hence a trigger to exit or take profit immediately.

Sell Trade Example

Fig. 1.1

Free Download

Download the Bands Forex Trading System

About The Trading Indicators

The Bands is an on-chart volatility indicator. It is made up of an upper and lower band which reacts to changes in volatility.

The middle band is just a Simple Moving Average line with an adjustable period value.

The stlm-histograms.ex4 is a custom indicator that shows the overall market trend and its turning point.

The stochastic-signals-mtf.ex4 forex indicator is a momentum indicator that compares the closing price of a forex pair to its price ranges over a specified period of time.

The sensitivity of the Stochastic Signals indicator is reduced by adjusting the “K,” “D,” and “S” variable within the inputs parameter.

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