TMA Bands Trading System

TMA Bands Trading System is a reversal trading system that can be used for intraday scalping and swing trading. This trading System consists of Tma Bands, Pivot points, Super trend, and Trend Identification Ribbon. This system also Includes the Laguerre indicator which gives an indication of oversold and overbought market conditions.

TMA Bands Trading System

TMA Bands are measure of volatility. If bands are wide open then volatility is very high in the market & if Bands are narrowing then volatility is low. Traders should take reversal trades only in high volatility and should avoid trading when Tma bands are narrow. Most of the time price tends to trade within the TMA Bands.

Upper bands provide resistance to the price and traders should look for a reversal sell setup when the price reaches near upper bands. Lower bands provide support to the price and traders should look for a reversal buy signal when the price reach near lower bands.

TMA-Bands-Trading-System Overview

TMA Bands Trading System 1

Laguerre indicator gives an indication of the oversold and overbought conditions of the market. If the reading of the indicator is below 0.15 then the market is oversold, if the reading of the indicator is above 0.85 then the markets are overbought.

Trend Identification Ribbon is a trend indicator. If the color of the ribbon is white then the trend is up. If the color of the ribbon is black then the trend is down. Since TMA Bands Trading System is a reversal trading system. Along with the ribbon, a super trend histogram is also used as a trend confirmation indicator. If the super trend is white then the trend is up and if the histogram is red then the trend is down. Traders should wait for a change in color of ribbon and histogram to take entry.

The pivot point is used for target and stop-loss placement. During a long setup, traders should use stop loss below the support zone and target near the resistance zones. During short trades, traders should use stop loss above the resistance zones and target below the support levels.

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TMA-Bands-Trading-System : Buy conditions

TMA Bands Trading System Buy
  • TMA Bands are wide open.
  • Price Reaching near the Lower Bands.
  • Laguerre indicator should give an oversold indication.
  • Super trend & Trend Identification Ribbon should be in buy mode.
  • Traders should use Stop loss below Support and target above the resistance level.

TMA-Bands-Trading-System : Sell Conditions

TMA Bands Trading System Sell
  • TMA Bands are wide open.
  • Price Reaching near the upper Bands.
  • Laguerre indicator should give an overbought indication. Super trend & Trend Identification Ribbon should be in sell mode.
  • Traders should use Stop loss above resistance and target below the support level.

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I have been actively trading stocks and currencies since April 2012. Besides trading with my personal money I am a technical analyst in a mutual fund which has Rs. 1 billion in assets under management. At my leisure, I love attending live music, traveling, and partying with friends.

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