MA BBands Signals Indicator

The MA  BBands signal indicator uses the principle of the moving averages. It is a band (channel) type indicator that is designed to be used on all time frames and on any currency pair. It is a cool indicator that works to make the life of a trader much more easy and enjoyable. However you have to be patient and first sit down and learn how this indicator works. But this should only take little of your time. And not to forget, the time spent understanding how to use this indicator is actually an investment on its own. This is what will determine how much you will make and how much your profit consistence will be.

The indicator is responsible for the display of the bands and arrows. There are two types of arrows; the red and the blue arrows. The red arrow is the sell signal while the blue arrow is the buy arrow. The indicator is best if used on the H1 timeframe but this is not compulsory. You should use it on any of the timeframes that you fill comfortable.

The band consists of three band line. Two white outer band lines and one yellow middle band line. The middle band line is a sort of the average where the market prices swing about. So the market prices will go up past the middle band line and the come down past the same middle band line. Therefore when the prices move past the middle band line moving up, you should be ready for a sell. Likewise, if the market prices move past the middle band line down wards, then you should get ready for a buy. But in both cases, wait for the sell and buy signals (arrows).

The specifics of how to trade using the MA BBands signals indicator.

When to place a sell: as a trader, you should place a sell when you notice the appearance of the red downward arrow. Mainly this happens when the prices have crossed the middle band line heading to or past the upper white band line. In many cases the arrow forms after the market prices cross the upper white band line. You should close the order when the prices cross the middle band line moving down.

When to place a buy: as a trader, you should place a buy when you notice the appearance of the blue upward arrow. This mainly occurs when the prices have crossed the middle band line heading to or past the lower white band line. In many cases the arrow forms after the market prices cross the lower white band line. You should close the order when the prices cross the middle band line moving up.

The reason behind closing the order after the middle line is crossed is because once this is achieved the prices can now move in any direction since they have sought of hit their center of gravity. Therefore to be safe you should close your orders.

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Source : forexobroker.com