BO Bands Forex Trading Strategy

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

Download

Download the BO Bands Forex Trading Strategy

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:

  1. 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.
  2. 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:

  1. 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.
  2. 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:

  1. 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.
  2. 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:

  1. 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.
  2. 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

Free Download

Download the BO Bands Forex Trading Strategy

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.

Share Now!