Forex ADX WMA Bands Indicator is a price action based trend following forex trading indicator. Besides its main trend signaling indicator, it also applies an envelope of dual bands which works as the dynamic channels. This feature enables traders to identify the dynamic support/resistance levels while trading at the market.
This Indicator can be applied to trade all kinds of forex currency pairs around the market. Moreover, this indicator fits with all sorts of timeframe charts within the forex MT4 trading platform.
Forex ADX WMA Bands Indicator Overview
Once you’re done with the installation of the Indicator at the MT4 terminal, your trading chart will appear like the following image:
Forex ADX WMA Bands Indicator Anatomy
Forex ADX WMA Bands Indicator works in a very simple manner to signal the market trends along with the entry signals. It turns blue and price closing above its level represent the buy signal within the bullish trend. On the other hand, the indicator slope turns red and price keeps closing below its level means it is time to go short considering a valid bearish trend of the market. Since both the lower and upper bands work as the dynamic support/resistance levels, you can also use such levels to update the stop positions of your market entries.
How to: Trade in Head & Shoulder Pattern
Forex ADX WMA Bands: Buy Parameters
- Price is supported by the lower band
- A bullish bar forms right above the ADX WMA slope
- ADX WMA turns blue
- Buy triggers when the high of the respective bullish bar is broken by the following price candles
- Set stop loss below the lower band
- Exit long/take profit whenever ADX WMA turns red
Forex ADX WMA Bands: Sell Parameters
- Price is resisted by the upper band
- A bearish bar forms right below the ADX WMA slope
- ADX WMA turns red
- Sell triggers when the low of the respective bearish bar is broken by the following price candles
- Set stop loss above the upper band
- Exit short/take profit whenever ADX WMA turns blue