Forex Profit Boost Indicator

Simple trading systems, as we know, are not necessarily unprofitable. Today we look at Forex Profit Boost - a simple indicator, which in itself almost an entire trading system. This indicator is a hybrid consisting of two classical indicators: Bollinger Bands and Moving Averages. Forex Profit Boost are not repainted, easy to use and configure.

Characteristics of Forex Profit Boost

• Platform: Metatrader4
• Currency pairs: Trend currency pairs
• Trading Time: Depends on the tactics of trade
• Timeframe: Any (recommended H4 and higher)

Settings of Forex Profit Boost indicator

MAPeriod - period moving average

MAMethod - averaging method moving average:

• 0 - Simple averaging
• 1 - Exponential averaging
• 2 - Smoothed averaging
• 3 - Linear Weighted averaging

BBPeriod - period of indicator Bollinger Bands

BBDeviation - the number of standard deviations from the zero line

BBShift - shift of indicator relative to the price graph

Application of the Forex Profit Boost indicator

As I said, the indicator consists of several classic indicators, Bollinger Bands and two Moving Averages. Forex Profit Boost indicator is a trend, respectively, he gives the best results when working in trending markets, in a quiet market will give a lot of false alarms (ie, the required filter). The indicator shows the availability and strength of the trend of the currency pair. For signals of all three colors are used - the default is yellow, blue and red. As you probably guessed, the red color indicates the presence of the bearish trend, blue is said that in the market is currently ruled by the bulls. Yellow indicates a weakening of the current trend, the possible change of trend, or the beginning of a rollback to the flat area. The more of yellow color, the more likely a change of trend.

In my view, work with Forex Profit Boost indicator will be more effective in older periods of four-hour graf and higher, although the authors claim that it will work well on all periods. For less than four hours of indicator gives a lot of false alarms, though perhaps they can be reduced competent selection of parameters for a specific period of, and additional filtering of trades.

Forex Profit Boost includes several classical indicators: Bollinger Bands and two Moving Averages - one of which is configured in the settings, the second MA is a simple moving average, plotted on the closing prices of period averaging 21. When finding a custom moving average above MA21 indicator will painted in blue, when the lower - in red. Thus, determines the presence and direction of the trend. Than the moving average is closer to the borders of Bollinger, the less of yellow color, the stronger the trend.

Signals of the Forex Profit Boost indicator to enter a trade

The authors offer two versions of the indicator signal extraction - aggressive and conservative. Let's start with the first one.

First, aggressive variant of the signal occurs when the histogram indicator changes from red to blue and vice versa, ie when changing the direction of the trend. In this case, when you change the bullish sentiment in the bearish (circle in the picture at number 1). Despite the fact that on the example we entered early in the nascent bear trend and could take a lot of trades in such pips on an inactive market, you would have had a lot of time to get a loss before jumped into a really good position.

Second, a conservative variant of entry suggests waiting rollback after the occurrence of a new trend to continue thereafter, thus slightly increasing the probability of falling into the trend (circle in the picture with the number 2). In other words, enter the market after the price is has rolled back, and then has gone in the right direction (yellow histogram bars have started to decrease in size).

And although the rules to exit positions from the authors of the indicator I have not found, yet also offer two different options for exit. For conservative traders will approach exit at occurrence yellow histogram bars (item 3 in the picture). When more aggressive trade can go out when you change the red to blue indicator (item 4). Aggressive traders can also use a small pullback for refilling existing trades (3 items in the picture).

Both variants will give good results entry with the correct filters. In this case, I mean, of course, the oscillators. Not bad for a solution to this problem MACD:

forex_profit_boost .rar