The MA BBands signal forex indicator uses the principle of moving averages. It is a band (channel) type forex indicator for use on all timeframes and any currency pair. It is an excellent indicator that works to make the life of a trader much more accessible and enjoyable. However, you must be patient and first sit down and learn how this indicator works. But this should only take a little of your time. And not to forget, the excellent time spent understanding how to use this forex indicator is an investment. This will determine how much you will make and how much your profit consistency will be.
Fig.1. Explaining the MA BBands signals forex indicator.
The forex indicator is responsible for the display of the chart bands and arrows. There are two types of arrows; red and blue color arrows. The red arrow is the sell entry signal, while the blue color arrow is the buy arrow. The indicator is best used during the H1 timeframe, but this is not compulsory. It would be best if you used it on any timeframes you feel comfortable with.
The band consists of three lines: two white outer band lines and one yellow middle band line. The central band line is a sort of the average where the market prices swing. So the forex market prices will go up past the middle band line and down past the same middle band line. Therefore, you should be ready for a sale when the prices exceed the middle band line. Likewise, if the forex market prices move past the middle band line downwards, you should prepare for a buy entry. But in both cases, wait for the sell entry and buy entry signals (arrows).
The specifics of how to trade using the Forex MA BBands signals indicator
When to place a sell Entry:
As a trader, you should put a sell entry when you notice the appearance of the red color downward arrow. Mainly this happens when the chart prices have crossed the middle chart band line heading to or past the upper white color band line. In many cases, the chart arrow forms after the forex market prices cross the upper white color band line. You should close the order when the market prices cross the middle band line.
Fig.2. MA BBands Signals forex Indicator placing a sell.
When to place a buy entry:
As a forex trader, you should place a buy entry when you notice the appearance of the blue color upward arrow. This mainly occurs when the chart prices have crossed the middle chart band line heading to or past the lower white color band line. In many cases, the arrow forms after the forex market prices cross the lower white color band line. You should close the order when the chart prices cross the middle band line.
Fig.3. MA BBands Signals Forex Indicator placing a buy.
The reason behind closing the open order after the chart middle line is crossed is that once this is achieved, the prices can move in any direction since they have sought to hit their center of gravity. Therefore to be safe, you should close your orders.
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MA BBands Signals Forex Indicator Free Download