Profit Bands Forex Trading Strategy

Trading is built for the tough and resilient minds, if you want to survive in the forex niche, you must possess a solid strategy that has the potential to churn out more profits than losses.

The Profit Bands forex trading strategy is composed of an advanced Bollinger Bands indicator and a buy sell histogram trading indicator.

The signals generated by this strategy are solid and easy to understand for most beginner currency traders.

Chart Setup

MetaTrader4 Indicators: BvS v3.ex4 (Input Variable Modified; BvSPeriod=18), binary-options-bands.ex4 (Inputs Variable Modified; Periode=24.0)

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

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Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Initiate a buy entry if the following indicator or chart pattern gets displayed:

  1. If the BvS v3.ex4 custom indicator displays lime filled bars within its window as seen on Fig. 1.0, price is said to be pushed to the upside i.e. a trigger to buy the currency pair of focus.
  2. If price closes above the lime colored middle line of the binary-options-bands custom indicator as illustrated on Fig. 1.0, the market sentiment is said to be bullish, hence a trigger to buy the asset of choice.

Stop Loss for Buy Entry: Place stop loss 1 pip below support.

Exit Strategy/Take Profit for Buy Entry

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

  1. If while a bullish trend is running, the BvS v3.ex4 custom indicator displays a red bar, it is pointing to a possible end in the current bullish sentiment, hence an exit or take profit will suffice.
  2. If price closes below the lime filled middle line of the binary-options-bands custom indicator during an uptrend, it is a signal to exit or take profit at once.

Sell Entry Rules

Enter a sell order if the following holds true:

  1. If the BvS v3.ex4 custom indicator displays red filled bars within its window as depicted on Fig. 1.1, price is said to be pressured to the downside i.e. a trigger to sell the designated forex pair.
  2. If price closes below the lime colored middle line of the binary-options-bands custom indicator as shown on Fig. 1.1, the sentiment in the market is said to be bearish, hence a trigger to sell the asset of choice.

Stop Loss for Sell Entry: Place stop loss 1 pip above resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If while a bearish trend is ongoing, the BvS v3.ex4 custom indicator displays a lime bar within its window, it is pointing to a possible end in the current bearish sentiment, hence an exit or take profit will do.
  2. If price closes above the lime filled middle line of the binary-options-bands custom indicator during a downtrend, it is a signal to exit or take profit forthwith.

Sell Trade Example

Fig. 1.1

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About The Trading Indicators

The binary-options-bands custom indicator is a band that resembles the Bollinger Bands, but is set to a default period of 61.8.

You can play around with this value to get a setting that suits your preference.

The BvS v3.ex4 custom indicator is known as the Buyers versus Sellers indicator and is used to literally gauge buyers versus sellers in the market.

It is a good pointer to where the future price is heading to (up or down).

Download The Bollinger Band Bounce Trading Strategy For FREE!

Combines Price Action And Market Volatility To Help You Identify Profitable Entries And Exits Quickly and Accurately.



  • Up To 100 Pips Per Trade With Low Risk
  • Includes Entry, Stop-Loss And Take Profit Rules
  • Learn And Trade This Strategy In only 10 Minutes