The AMA Bands Forex indicator was built for Metatrader 4 and follows the trend with the help of a colored arrow bands system.
It looks a bit similar to the Bollinger Bands indicator, but this indicator uses the AMA formula.
Key Points:
- A blue colored AMA arrow represents a buy signal.
- A red colored AMA arrow represents a sell signal.
Overall, the indicator works very well in a trending environment.
The indicator works on a wide range of trading instruments (Forex, CFD stocks, Indices, Cryptocurrencies, Commodities,..).
Free Download
Download the “ama-bands.mq4” indicator for MT4
Indicator Example Chart (EUR/USD M30)
How to trade with it (example)?
Open a new buy trade whenever the AMA bands indicator starts drawing the blue arrows on the chart.
Open a new sell trade whenever the AMA bands indicator starts drawing the red arrows on the chart.
Close the trade when an opposite trading signal arrow appears on the chart, or for a fixed profit target of your preference.
Set a stop loss above or below the most recent swing high or low price.
Feel free to use your own favorite trading method to open and close trades with the AMA Bands Forex indicator.
Indicator Specifications
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Input Parameters: Range, slow AMA, fast AMA, inner bands, outer bands, color settings & style
Indicator type: trend
Repaint? Does not repaint the AMA bands and the buy & sell arrows.
Download Now
Download the “ama-bands.mq4” indicator for Metatrader 4
AMA Bands + DARMA Scalper Forex Strategy for MT4
This strategy combines the volatility-aware trend bands of the AMA Bands Forex Indicator with the fast and precise entry signals of the DARMA Scalper Forex Indicator.
The AMA Bands provide dynamic support and resistance zones adapting to market volatility, while the DARMA Scalper delivers scalp-friendly buy and sell signals based on momentum and price action.
This combination works best on lower timeframes like M5 to M15, targeting quick trend-based scalps.
What Is This Strategy About?
The AMA Bands Forex Indicator plots upper and lower bands around an Adaptive Moving Average, widening or contracting based on volatility.
These bands act as dynamic support and resistance, helping traders identify trend strength and potential reversal zones.
The DARMA Scalper Indicator is designed for fast entries and exits, generating buy and sell signals based on short-term momentum shifts.
Using these two together, traders can scalp high-probability trades near band extremes with confirmation from the scalper signals.
Buy Rules
Conditions:
- Price touches or nears the lower AMA Band, indicating potential support.
- DARMA Scalper Indicator gives a buy signal (usually a green arrow or marker).
Entry:
Enter a buy trade when the DARMA Scalper confirms a bullish reversal near the lower AMA Band.
Stop Loss:
Place a stop loss just below the lower AMA Band or recent swing low to limit risk.
Take Profit:
Target the middle AMA Band or upper AMA Band as take profit levels, or use a fixed risk-reward ratio such as 1:2.
Sell Rules
Conditions:
- Price reaches or approaches the upper AMA Band, suggesting potential resistance.
- DARMA Scalper Indicator produces a sell signal (red arrow or marker).
Entry:
Open a sell trade when the DARMA Scalper confirms a bearish reversal near the upper AMA Band.
Stop Loss:
Set stop loss just above the upper AMA Band or recent swing high.
Take Profit:
Take profit near the middle or lower AMA Band, or follow a set risk-reward ratio.
Advantages
- Combines adaptive volatility bands with precise scalping signals.
- Dynamic bands adjust to market conditions, improving support/resistance accuracy.
- Suitable for quick scalping trades in trending or ranging markets.
- Clear visual cues simplify trade decisions.
Drawbacks
- Lower timeframe scalping requires strict discipline and fast execution.
- Can produce false signals during very choppy or news-driven volatility.
- Stop losses can be hit easily if the market breaks through bands abruptly.
Conclusion
The AMA Bands + DARMA Scalper Strategy blends volatility-sensitive trend bands with fast, momentum-based scalping signals.
The AMA Bands Forex Indicator offers dynamic support and resistance, while the DARMA Scalper Forex Indicator pinpoints optimal entry points.
Together, they form an effective system for traders looking to scalp small but consistent profits in fast-moving markets.
Installation:
Open the Metatrader 4 platform
From the top menu, click on “File”
Then click on “Open Data Folder”
Then double click with your mouse button on “MQL4”
Now double click on “Indicators”
Paste the ama-bands.mq4 indicator in the Indicators folder.
Finally restart the MT4 platform and attach the indicator to any chart.
How to remove the indicator?
Click with your right mouse button in the chart with the indicator attached onto it.
Select “Indicator List” from the drop down menu.
Select the indicator and press delete.
How to edit the indicator’s inputs and parameters?
Right click with your mouse button in the chart with the indicator attached onto it.
From the drop down menu, click on indicators list.
Select the indicator from the list and press edit.
Now you can edit the indicator.
Finally, press the OK button to save the updated configuration.
