Dola-Bollinger Bands Indicator is a new concept of trading Bollinger bands that not only defines the swing areas of the market but also promotes trend-following tradings. Like other orthodox trend defining indicators, it also uses a moving average system with standard deviation for identifying the market momentum. The indicator looks quite easy to understand and can benefit traders with any level of trading experience.
Dola-Bollinger Bands Indicator can be applied to trade all kinds of forex currency pairs available in the market. Furthermore, this trend catching tool can be applied to trade all sorts of timeframe charts within the forex MT4 trading platform.
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Dola-Bollinger Bands Indicator Overview
Download and install it on your MT4 terminal. Once done, your chart will appear like the following image:
Dola-Bollinger Bands Indicator Explanation
Dola-Bollinger Bands Indicator plots the stop levels of the current trend that changes its positions with the changes in price actions. In another word, it outlines the trailing stop level of the present market trends. Price closes above its level mean the market is in a bullish trend.
On the other hand, price breaks below the indicator level represent the bearish trend of the market. For a better understanding, it uses a blue line for the bullish trend and a red line for the bearish trend confirmation.
Once you’re on a trade, use the current level of the indicator as a stop loss area. You may also add other trend-following oscillators for adding more confluence to your trading decisions.
Dola-Bollinger Bands: Buy Conditions
- The indicator level turns into a blue color
- Price remains above the indicator level
- A bullish candle forms near the support area
- A buy can be triggered after the above conditions are met
- Set stop loss below the current area of the indicator
- Exit long/take profit whenever price breaks below the indicator level
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Dola-Bollinger Bands: Sell Conditions
- The indicator level turns into a red color
- Price remains below the indicator level
- A bearish candle forms near the resistance area
- A sell can be triggered after the above conditions are met
- Set stop loss above the current area of the indicator
- Exit short/take profit whenever price breaks above the indicator level