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.).
Make yourself familiar with this technical indicator and test it first on a demo account for an extended period of time.
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The following chart shows how 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:
- A buy signal is given when 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.
- A sell signal is given when 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