Bands and Bars Trading Strategy works well on 1H and above time frames and any currency pair.
The MA Angle Indicator
Many traders have been fascinated by the way moving averages makes trading a bit more harmonized. It makes it easier to decipher which way price is more likely to go. One of the things that have caught the minds of many traders is if it is possible to measure the angle of the moving average. This is because steep moving averages are usually the case when the market is strongly trending.
The MA Bands
Another indicator that has caught the minds of many traders are indicators that have some sort of upper and lower bands, like the Bollinger Bands. These types of indicators usually have a midline that derived from some sort of moving average and the likes, only that an upper and lower band is added around it, which usually is a deviation from the middle line. These upper and lower bands act as a marker to identify overbought or oversold price conditions, which could eventually result in a reversal.
How to trade with Bands and Bars Trading Strategy?
Buy (Long) Trade Setup
Entry
- MA Angles histogram should be green
- Price should have touched or is below the lower outer band
- A blue arrow pointing up should appear
- Enter a buy market order at the close of the candle with a confluence of these rules
Stop Loss
Set the stop loss at the swing low below the entry candle
Exit
Close the trade when a red arrow pointing down appears
Sell (Short) Trade Setup
Entry
- MA Angles histogram should be red
- Price should have touched or is above the upper outer band
- A red arrow pointing down should appear
- Enter a buy market order at the close of the candle with a confluence of these rules
Stop Loss
Set the stop loss at the swing high above the entry candle
Exit
Close the trade when a blue arrow pointing up appears
How to install Bands and Bars Trading Strategy?
In order to install the indicator on your MT4 platform, you need to follow these steps:
- Click on the “Download Indicator” button located at the top right corner of the screen.
- Save the file to your computer.
- Extract and move the files into the MT4>Indicator folder of the MetaTrader4 software file directory.
- Restart your Metatrader platform.
- Navigate to “Indicators.”
- And select the “Bands and Bars Trading Strategy” template to apply it on the chart.
Note: Fxtradingrevolution is the party that developed Bands and Bars Trading Strategy. AtoZ Markets does not carry any copyrights over this trading tool.
