The target bands forex MT4 indicator draw dynamic bands on the activity chart.
When the trend is up, the target bands will slope up.
Likewise, when the trend is down, the target bands will slope down.
Every time the price touches the bands, the indicator will paint a signal circle on the chart.
It’s important to take notice of the prevailing trend.
- When the trend is down, we are only interested in taking sell signals that appear at the upper light-brown band.
- When the trend is up, we are only interested in taking buy signals that appear at the lower blue band.
Feel free to experiment with the different indicator’s inputs settings to suit your needs and preferences.
Free Download
Download the “target-bands-indicator.ex4” MT4 indicator
Indicator Chart (EUR/USD H4)
The EUR/USD 4-Hour chart below displays the Target Bands Signal Metatrader 4 forex indicator in action.
Basic Trading Signals
Signals from the Target Bands Signal MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Open a buy trade when the Target Bands are sloping up and a circle signal appears at the lower blue target band.
Place a stop loss below support or use your own preferred SL method.
Sell Signal: Open a sell trade when the Target Bands are sloping down and a circle signal appears at the upper light-brown target band.
Place a stop loss above resistance or use your own preferred SL method.
Target Bands + Trend Predictor Forex Scalping Strategy for MT4
This MT4 scalping strategy combines the power of the Target Bands Indicator and the Trend Predictor v1.0 Indicator.
It is designed for traders who want fast confirmations and clean entries on the M1 and M5 charts.
The Target Bands indicator provides dynamic support and resistance zones, helping you understand where the price may reverse or expand.
When the bands slope upward, the market is usually trending up.
When they slope downward, the market is often in a bearish phase.
The Trend Predictor confirms these moments with blue buy arrows and red sell arrows, making the system easy to read even for beginners.
This strategy works well during sessions with steady price movement, such as London and New York.
It is suitable for scalpers who want to execute many short trades each day, while keeping the rules simple and visual.
Both indicators complement each other, as the Target Bands define trend strength, while the Trend Predictor provides clear timing signals.
Buy Entry Rules
- Target Bands slope upward, and price stays above the middle band.
- A blue Trend Predictor arrow appears, signaling a buy opportunity.
- Enter the buy trade after the candle closes above the signal arrow.
- Place the stop loss a few pips below the lower Target Band.
- Set a take profit of 5 to 12 pips on M1 or 10 to 20 pips on M5.
Sell Entry Rules
- Target Bands slope downward, and price stays below the middle band.
- A red Trend Predictor arrow appears, signaling a sell opportunity.
- Enter the sell trade after the candle closes below the signal arrow.
- Place the stop loss a few pips above the upper Target Band.
- Set a take profit of 5 to 12 pips on M1 or 10 to 20 pips on M5.
Advantages
- Clear visual signals suitable for new and experienced traders.
- Works on both fast and steady market conditions.
- Scalping structure allows many opportunities per session.
- Simple rules avoid confusion or conflicting information.
- Targets are small, making trade management easy.
Drawbacks
- Noisy markets can create several false arrows.
- Trending sessions work better than slow sessions.
- Requires discipline with small stop losses.
- Not suitable for traders who dislike quick decision-making.
- Spreads on exotic pairs may reduce profitability.
Case Study 1
On EURUSD M5, during the London open, the Target Bands turned upward and widened slowly.
Price stayed above the middle band for several candles, which showed a strong bullish tone.
A blue Trend Predictor arrow printed after a brief pullback.
The long trade was taken at the candle close, and the stop loss was set below the lower band.
Within minutes price moved upward by 16 pips and hit the take profit.
The bands continued to slope upward, which confirmed that the trade followed the correct market direction.
Case Study 2
On GBPJPY M1 in a fast Asian-to-London transition, the Target Bands sloped downward.
Price kept rejecting the upper band as it moved lower.
A red Trend Predictor arrow appeared after a short consolidation.
The sell trade was opened on the next candle close.
The stop loss was placed above the upper band, which kept the risk small.
Price dropped sharply by 10 pips, and the target was reached.
Although GBPJPY moved fast, the clear slope of the bands made it easy to stay confident in the trade.
Strategy Tips
- The slope of the Target Bands is your main guide.
- An upward slope suggests bullish movement, while a downward slope suggests bearish movement.
- Use the Trend Predictor arrows for timing. Blue arrows mean potential buys, and red arrows mean potential sells.
- Focus on M1 and M5 for the best scalping conditions.
- Avoid trading right before major news events.
- Pairs with tight spreads like EURUSD or USDJPY are usually the most efficient.
- Wait for the candle to close before entering any signal to avoid early entries.
Download Now
Download the “target-bands-indicator.ex4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (time frame, price, bands deviations, interpolate, alerts) Width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, Daily, Weekly, Monthly
Type: signal bands
