The High/Low Forex Bands indicator for Metatrader 5 draws 3 bands on the chart that can be used for trade entry in both up and down-trending markets.
We are only interested in observing price action that occurs around the upper red and low purple band.
How to trade with this technical tool?
- A candle close above the red colored high band creates a buy breakout signal.
- A candle close below the purple colored low band creates a sell breakout signal.
The following indicator inputs and parameters can be modified: bands period, bands update, bands applied price (high/low).
It should work equally well across all time frames and trading instruments (Forex, Gold, Indices, Stocks, etc.).
Please make yourself familiar with this technical indicator and test it first on a demo account for an extended period.
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Chart Example
The following chart shows what the High/Low Forex Bands indicator looks like when applied to the MT5 chart.
How To Buy And Sell Currency Pairs With The High/Low Forex Bands Indicator?
Find a simple trading example below:
Buy Signal
- A buy signal is given when the price breaks and closes above the red high band.
- Open a long trade and place your stop loss below the purple colored low band.
- Exit the long trade for a fixed profit target of your preference.
Sell Signal
- A sell signal is given when the price breaks and closes below the purple low band.
- Open a short trade and place your stop loss above the red colored high band.
- Exit the short trade for a fixed profit target of your preference.
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Frequently Asked Questions
How Do I Install This Custom Indicator On Metatrader 5?
- Open the MT5 trading platform
- Click on the File menu button located at the top left part of the platform
- Click on Open Data Folder > MQL5 folder > Indicators
- Copy the HLBands.mq5 indicator file in the Indicators folder
- Close and restart the trading platform
- You will find the indicator here (Navigator window > Indicators)
- Drag the indicator to the chart to get started with it!
How Do I Edit This Indicator?
- Click in the open chart with your right mouse button
- In the dropdown menu, click on Indicator List
- Select the indicator and click on properties
- Now you can edit the inputs, colors, levels, scale and visualization
- Finally click the OK button to save the new configuration
