The Colored Trading Bands Signals Metatrader 4 forex indicator is based on a trading channel but with buy and sell arrow on it.
Thus makes it quite easy for any currency trader to spot new trade opportunities.
The upper resistance band is colored magenta while the lower support band is colored blue. The mid line is colored orange.
The indicator draws green and red arrows on the activity chart. Green to buy and red to sell.
Above the mid line, the trend is positive and traders look for buy trade opportunities.
Conversely, below the mid line the trend is negative and traders look for sell trade opportunities.
The default indicator setting can be modified directly from the indicator’s inputs tab. Experiment with its settings.
The EUR/USD H1 chart below displays the Colored Trading Bands Signals forex indicator in action.
Basic Trading Signals
Signals from the Colored Trading Bands Signals forex indicator are easy to interpret and goes as follows:
Buy Signal: Open buy trade position when price is above the mid line and the indicator paints a green arrow on the chart.
Sell Signal: Open sell trade position when price is below the mid line and the indicator paints a red arrow on the chart.
Trade Exit: Close the buy trade at the resistance band. Close the sell trade at the support band or use your own method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern indicator
Customization options: Variable (Timeframe, Interpolate, Show VWMA, Signal bar, Alerts) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the colored-bands-signals.mq4 indicator into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)