The EU Minimum Bid Rate is also known as the main refinancing rate, which is the interest rate banks are required to pay when they borrow money from the European Central Bank.
Banks engage in this when they’re low on liquidities.
By altering this rate, the apex bank i.e. ECB is able to sway interbank interest rates.
This invariably means that the ECB is able to influence impact inflation by altering the interest rates.
In most cases when the ECB reveals an interest rate hike, it is referring to the minimum bid rate.
MetaTrader4 Indicators: Gartley-patterns.ex4 (default setting), GG-RSI-CCI.ex4 (default setting)
Preferred Time Frame(s): 1-Minute, 5-Minutes, 15-Minutes
Recommended Trading Sessions: After news release
Currency Pairs: EUR/USD
Trade Example (Click the image for full size)
Long Entry Rules
Place a long entry 20 minutes after the event risk i.e. EU Minimum Bid Rate, if the following rules holds sway:
- Price bar opens above the magenta line of the Gartley-patterns custom indicator, a buy signal is in place.
- The yellow-green colored vertical bars of the GG-RSI-CCI custom indicator forms within its indicator window, an indication that price is being pressured higher.
Stop Loss for Long Entry: Place stop loss below immediate support.
Exit Strategy/Take Profit for Long Entry
Exit or take profit on position(s) if the following chart or indicator patterns are on display:
- If price bar closes below the magenta line of the Gartley-patterns custom indicator, an exit or take profit should be initiated.
- If the GG-RSI-CCI custom indicator forms corresponding golden bars, it is a signal that volatility is reducing and an eventual breakout is eminent.
Sell Entry Rules
Place a sell entry when the following chart or indicator patterns are in display 20 minutes after the release of the EU Minimum Bid Rate:
- If price opens and closes below the magenta line of the Gartley-patterns custom indicator, a sell signal is eminent.
- If the GG-RSI-CCI custom indicator forms a corresponding orange-red vertical bars within the indicator window.
Stop Loss for Sell Entry: Place stop loss above immediate resistance.
Exit Strategy/Take Profit for Sell Entry
- If price closes above the magenta line of the Gartley-patterns custom indicator, an exit or take profit is advised.
- Volatility is said to be thin if the corresponding color of the GG-RSI-CCI custom indicator is yellow-green, thereby triggering an exit or take profit.
About The Trading Indicators
The Gartley Patterns.ex4 custom indicator offers good entry possibility, while also informing the trader about possible trend. This indicator is commonly used to initiate buy and sell trades.
Finally, the GG-RSI-CCI.ex4 custom indicator defines a combination of other dominant technical indicators i.e. CCI, RSI etc.
Its design allows for it to determine the major currency trend. The yellow-green bars represents an uptrend, orange-red bars signifies downtrend, while ranging market is denoted by gold colored bars.