The Fractal Bands forex indicator for MT4 acts similar to Bollinger Bands.
The technical indicator consists of one middle band and two outer bands.
Trading the indicator is pretty simple to understand:
- The trend is considered bullish when the price bar is positioned above the middle line.
- The trend is considered bearish when the price bar is positioned below the middle line.
The outer bands can be used to take profits:
- For buy trades, take profit at the upper Fractal band.
- For sell trades, take profit at the lower Fractal band.
You can apply the Fractal Bands Metatrader 4 indicator to any currency pair of your preference.
Works for scalping, day trading and swing trading purposes.
The EUR/USD 4-Hour chart below displays the Fractal Bands Metatrader 4 indicator in action.
Basic Trading Signals
Signals from the Fractal Bands MT4 indicator are easy to interpret and goes as follows:
Buy Signal: Open a buy trade position when the price bar crosses and closes above the middle thick Fractal Bands line from below. Place a protective stop-loss below the most recent swing low. Take profit at the upper Fractal band.
Sell Signal: Open a sell trade position when the price bar crosses and closes below the middle thick Fractal Bands line from above. Place a protective stop-loss above the most recent swing high. Take profit at the lower Fractal band.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (e period, normal speed, alpha, shift) 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 fractal-bands.mq4 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)