Band Bounce Forex Trading Strategy


You can now download the Band Bounce Forex Trading Strategy for free on AtoZ Markets indicators gallery.

The concept behind Band Bounce Forex Trading Strategy is to use the EMA band as an indicator to determine trend direction. In this template, we'll be using the various EMAs to make the best trading strategy.

If the 25 EMA is on top and the 100 EMA is at the bottom, then we will be taking buy trades. If the 25 EMA is at the bottom and the 100 EMA at the top, then we will be looking for sell setups. If the EMAs are not stacked, then we will not be taking a trade as the market might still be reversing and has not yet established a trend.

Robby DSS is a custom indicator that can be used to determine if the market has reached an excessively extended point. This indicator plots red and blue dots to determine turning points. The indicator also features an oversold or overbought marker at the 20 and 80 lines. A market condition below the 20 would be classified as an oversold. A market condition that exceeds 80 would be considered overbought. We will look for color changes in these areas that are consistent with the trend bias of the EMA bands to determine our entry points.

Indicators:

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  • 25 EMA: Gold
  • 60 EMA: Green
  • 100 EMA: Brown
  • Robby DSS Forex

Timeframe: 1-hour, 4-hour, and daily charts

Currency Pair: any

Session: any

How to trade with Band Bounce Forex Trading Strategy?

Buy (Long) Trade Setup Rules

Entry:

  • The EMAs should not be stacked
    • 25 EMA – top
    • 60 EMA – middle
    • 100 EMA – Bottom
  • Robby DSS should not be in an oversold market situation
  • Place a buy order at the close of each candle, corresponding to the color change in the Robby DSS indicator (from red to blue).

Band Bounce Forex Trading Strategy

Stop Loss:

  • Place the stop loss at the swing lowest point below the entry candle

Profit:

  • Option 1: Target take profit should be set at 2x the stop loss risk
  • Option 2: Place the target profit at the previous swing high.

Short Trade Setup Rules

Entry:

  • The EMAs should not be stacked
    • 25 EMA – Bottom
    • 60 EMA – middle
    • 100 EMA – top
  • Robby DSS should be in an overbought market situation
  • Place a sell order at the close of each candle, corresponding to the color change in the Robby DSS indicator (from blue to red).

Stop Loss:

  • Place the stop loss at the swing, higher than the entry candle.

Profit:

  • Option 1: Target take profit should be set at 2x the stop loss risk
  • Option 2: Place the target profit at the previous swing low.

How to download and install an indicator?

In order to install the indicator on your MT4 platform, you need to follow these steps:

  1. Click on “Download Indicator” button located at the bottom of the post.
  2. Save the file to your computer.
  3. Extract and move the files into MT4>Indicator folder of the MetaTrader4 software file directory.
  4. Restart your Metatrader platform.
  5. Navigate to “Indicators.”
  6. And select “Band Bounce Forex Trading Strategy” template to apply it on the chart.

Note: This indicator was developed by T. Morris. AtoZ Markets does not carry any copyrights over this trading tool.

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