BBands Stop Alert Indicator is one of the simplest trend-following indicators you may have ever experienced. Besides defining the market trends it also determines possible trend reversal points which are interpreted as trade signals. The BBands stop can be applied to trade all kinds of forex currency pairs.
BBands Stop Alert Indicator suits all sorts of timeframe charts available within your forex MT4 trading platform thus supports both scalping and day trading. You can also easily customize this indicator for e-mail alerts so that you never miss a trade signal.
BBands Stop Alert Indicator Overview
Download and install the indicator on your MT4 terminal. Once you’re done, your chart will appear like the following image:
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BBands Stop Alert Indicator Explanation
BBands Stop Alert Indicator uses an 8-day period price monitoring system that collects the highs and lows of the price over the selected period of time for plotting the trend signals.
It also includes a Standard Deviation Period 1 and NBars applied to the last 1000 bars for backtesting its performance. According to the general concept, the price hits below the BBands Stop level and keeps closing below the indicator level signals for the bearish trend of the market.
Contrarily, price moves above the BBands Stop level and remains above the indicator level is interpreted as a bearish trend signal. For better understanding, the indicator includes arrow signals pointing to the possible direction of the upcoming trend.
BBands Stop: Buy Conditions
- Price breaks above the BBands Stop level
- An arrow signal is plotted below the current price candle pointing upwards
- Buy triggers after the above conditions are done
- Set stop loss below the low of the current BBands Stop level
- Exit long/take profit whenever an arrow appears above the price candle pointing downwards.
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BBands Stop: Sell Conditions
- Price breaks below the BBands Stop level
- An arrow signal is plotted above the current price candle pointing downwards
- Sell triggers after the above conditions are done
- Set stop loss above the high of the current BBands Stop level
- Exit short/take profit whenever an arrow appears below the price candle pointing upwards.