The BO Bands forex trading strategy delivers accurate and precise swing trading signals that traders can rely on.
The strategy is a blend that allows you measure volatility alongside trend, in order to make the best of your trading signals.
Chart Setup
MetaTrader4 Indicators: binary-options-bands.ex4 (default setting), Turn_Area.ex4 (default setting)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, Day
Recommended Trading Sessions: Any
Currency Pairs: Any pair
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Buy Trade Example
Fig. 1.0
Strategy
Long Entry Rules
Enter a buy in the market if the following indicator or chart pattern gets displayed:
- If the dark violet histogram of the Turn_Area.ex4 custom indicator forms above the 0.00 signal level, price is said to be pushed to the upside i.e. a signal to buy the pair of focus.
- If price opens and closes above the lime colored middle line of the binary-options-bands custom indicator as shown on Fig. 1.0, the sentiment in the market is said to be bullish. Watch how price trades along the upper red band of the binary-options-bands MT4 indicator, an indication that the prevalent trend is bullish, hence we recommend a buy entry.
Stop Loss for Buy Entry: Place stop loss 2 pips below immediate support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following holds sway on the activity chart:
- If the dark violet histogram of the Turn_Area.ex4 custom indicator forms below the 0.00 signal level during an ongoing bullish trend, it is an indication of halting buy pressures, hence an exit or take profit is advised.
- If price closes below the lime colored middle line of the binary-options-bands, it is an indication of weaning bulls pressure i.e. a trigger to exit or take profit at once.
Sell Entry Rules
Enter a sell position if the following rules or conditions takes precedence in the market:
- If the dark violet histogram of the Turn_Area.ex4 custom indicator forms below the 0.00 signal level, price is said to be pressured lower i.e. a signal to sell the currency of focus.
- If price opens and closes below the lime colored middle line of the binary-options-bands custom indicator as shown on Fig. 1.1, the market sentiment is said to be bearish. Watch how price trades along the lower dodger blue band of the binary-options-bands MT4 indicator, an indication that the prevalent market trend is bearish, hence we recommend a sell entry.
Stop Loss for Sell Entry: Place stop loss 2 pips above immediate resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following holds true:
- If the dark violet histogram of the Turn_Area.ex4 custom indicator forms above the 0.00 signal level during an ongoing bearish trend, it is an indication of weaning bears pressures, hence an exit or take profit is advised.
- If price closes above the lime colored middle line of the binary-options-bands, it is an indication of halting bears pressure i.e. a trigger to exit or take profit at once.
Sell Trade Example
Fig. 1.1
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About The Trading Indicators
The Turn_Area.ex4 custom indicator is a custom indicator that is built on the RSI and moving averages indicators.
The binary-options-bands custom indicator is a band that resembles the Bollinger Bands, but is set a default period of 61.8.
You can play around with this value to get a setting that suits your preference.