Awesome BBands Stop Forex Trading Strategy

The Awesome BBands Stop forex trading strategy is a well-tested trading strategy that works well for both advanced and beginner traders in the currency market.

Let’s explore below how you can generate great buy and sell signals from this simple to understand strategy:

Chart Setup

MetaTrader4 Indicators: BBands_Stop_BO.ex4 (default setting), Awesome_Signal.ex4 (default setting)

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 Awesome BBands Stop Forex Trading Strategy

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 chartreuse dotted line of the BBands_Stop_BO.ex4 custom indicator forms below price bars as illustrated on Fig. 1.0, price is said to be pushed to the upside i.e. a trigger to buy the specified currency pair.
  2. If the histograms (green and red) of the Awesome_Signal.ex4 custom indicator breaks above the 0.00 level as depicted on Fig. 1.0, it is pointing to an upward price pressure, as such a buy signal should be considered without delay.

Stop Loss for Buy Entry: Place stop loss below the green dotted support line.

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 ongoing, the dotted line of the BBands_Stop_BO.ex4 custom indicator turns orange, it is signaling the end of the bullish trend, hence an exit or take profit is advised.
  2. If the histograms (green and red) of the Awesome_Signal.ex4 custom indicator readjust to form below the 0.00 level, bullish pressure is said to be losing steam, hence an exit or take profit will suffice.

Sell Entry Rules

Enter a sell order if the following holds true:

  1. If the orange dotted line of the BBands_Stop_BO.ex4 custom indicator takes up position above the candlesticks as seen Fig. 1.1, price is said to be pressured lower i.e. a trigger to sell the designated forex pair.
  2. If the histograms (red and green) of the Awesome_Signal.ex4 custom indicator breaks below the 0.00 level as shown on Fig. 1.1, it is an indication of downward price pressures, hence a sell trigger is said to be in place.

Stop Loss for Sell Entry: Place stop loss above the orange dotted resistance line.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If while a bearish trend is running, the dotted line of the BBands_Stop_BO.ex4 custom indicator turns chartreuse, it is signaling the end of the bearish trend, hence an exit or take profit is recommended.
  2. If the histograms (green and red) of the Awesome_Signal.ex4 custom indicator readjust to form above the 0.00 level, bearish pressure is said to be weakening, hence an exit or take profit will do.

Sell Trade Example

Fig. 1.1

Free Download

Download the Awesome BBands Stop Forex Trading Strategy

About The Trading Indicators

The Awesome_Signal.ex4 custom indicator just like any other oscillator has its values fluctuate above and below the zero signal line.

In so doing it depicts the difference between the 4 SMA and 34 SMA.

The BBands_Stop_BO.ex4 is a trend indicator and a modified Bollinger Bands.

The indicator finds its use in the gauging trend change, along with setting stop orders.

Share Now!