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Synthetic Bands Index Forex Trading Strategy

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    The Synthetic Bands Index forex trading strategy responds appropriate to price fluctuations and provides you with buy and sell trading signals that work for long-term profits.

    Three unique indicators are added to achieve realistic gains from your currency trading investments when using this strategy i.e. the Relative Vigor Index.ex4, Doda-BBands.ex4, and Detrended_Synthetic_Price_dbarsf.ex4 indicator.

    The RVI as an oscillator that tries to see how far a current trend will go, while both the Doda-BBands, and Detrended_Synthetic_Price_dbarsf will offer us a quick direction into a possible trend.

    Chart Setup

    MetaTrader 4 Indicators: Detrended_Synthetic_Price_dbarsf.ex4 (Inputs Variable Modified; Change color on: Change color on zero cross), Doda-BBands.ex4 (Default Setting), Relative Vigor Index.ex4 (Parameters Modified; Period=24)

    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

    Download the Synthetic Bands Index Forex Trading Strategy 

    Buy Trade Example

    Fig. 1.0

    Strategy

    Long Entry Rules

    Enter a buy order if the following rules or conditions hold sway:

    1. If the royal blue dotted line of the Doda-BBands custom indicator gets aligned somewhat below the candlesticks as shown on Fig. 1.0, price is said to be driven to the upside i.e. a trigger to go long on the selected currency pair.
    2. If the lime green bars of the Detrended_Synthetic_Price_dbarsf custom indicator gets displayed on the activity chart (see Fig. 1.0), a buy signal is said to be looming.
    3. If the red line of the RVI indicator break and stay above the 0.00 level as illustrated on Fig. 1.0, it is a trigger to go long on the designated forex pair.

    Stop Loss for Buy Entry: Place stop loss below the blue dots.

    Exit Strategy/Take Profit for Buy Entry

    Exit or take profit if the following rules or conditions takes center stage:

    1. If while a buy signal is ongoing, the Doda-BBands custom indicator forms a red dot that is aligned above price bars, a bearish reversal is said to be looming, as such an exit or take profit will suffice.
    2. If the Detrended_Synthetic_Price_dbarsf custom indicator forms an orange red bar on the activity chart while buy positions are locked in, an exit or take profit should be promptly considered.
    3. If the red line of RVI MT4 indicator fall below the 0.00 level during a buy signal, it is an indication of a looming bearish reversal, hence an exit or take profit is recommended.

    Sell Entry Rules

    Enter a sell order if the following holds true:

    1. If the red dotted line of the Doda-BBands custom indicator gets aligned slightly above the candlesticks as seen on Fig. 1.1, price is said to be pushed lower i.e. a trigger to go short on the currency pair of interest.
    2. If the orange red bars of the Detrended_Synthetic_Price_dbarsf custom indicator gets displayed on the activity chart (see Fig. 1.1), a sell signal is said to be imminent.
    3. If the red line of the RVI indicator break and stay below the 0.00 level as depicted on Fig. 1.1, it is a trigger to go short on the currency pair of focus.

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

    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 Doda-BBands custom indicator forms a royal blue dot that is aligned below price bars, a bullish reversal is said to be imminent, as such an exit or take profit will do.
    2. If the Detrended_Synthetic_Price_dbarsf custom indicator forms a lime green bar on the activity chart while sell positions are locked in, an exit or take profit should be promptly advised.
    3. If the red line of RVI MT4 indicator surges above the 0.00 level during a sell signal, it is an indication of a looming bullish reversal, hence an exit or take profit is advised.

    Sell Trade Example

    Fig. 1.1

    Free Download

    Download the Synthetic Bands Index Forex Trading Strategy

    About The Trading Indicators

    The Relative Vigor Index technical indicator is a technical tool that gauges the conviction of a recent price action and the likelihood that it will continue.

    The Doda-BBands.ex4 indicator is the modified version of Bollinger band and generates buy and sell signals based on this premise.

    The Detrended_Synthetic_Price_dbarsf.ex4 custom indicator gauges trend for a wide range of currency pairs.

    It changes the color of the candlesticks to green (bullish trend) and red (bearish trend).