Free Forex Indicators (MT4), Trend Following Indicators

True Range Bands Indicator for MT4

The True Range Bands Indicator identifies the market momentums and spots crucial price breakouts using its dynamic bands. Besides breakouts, it also identifies retracement trading signals plotted at the overbought/oversold levels outlined by the indicator.

Technically, the True Range Band works in a similar way to the Bollinger bands. However, this indicator offers a swift response to price actions and offers different types of trading options in both on-trend and off-trend markets.

True Range Bands Indicator for MT4 Overview

The True Range Bands move based on the changes in price over the last 13 candles of your preferred timeframes. It uses a standard deviation of 1.618 for measuring the market volatility statistically.

True Range Bands overview

According to our observation, the True Range Bands Indicator suits all timeframes and supports any forex or stock charts.

Check This: Pin Bar: A Powerful Price Action Trading Indicator

True Range Bands Indicator for MT4 Explanation

The True Range Bands Indicator comprises three dynamic lines. The higher line indicates the overbought level, and the line at the bottom represents the oversold level.

The mid-level plotted with dots works as a dynamic trendline. It means we can assess a basic idea about the current trend direction depending on whether the price moves above or below the trendline.

True Range Bands explanation

For instance, the price moves above the main trendline and then breaks above the higher band, representing a buy order opportunity following a bullish breakout and a bullish market trend condition.

You can also anticipate pullback entry setups by using the OB/OS bands. For example, a false break at the lower band(oversold) indicates the price intends to initiate a bullish move from an oversold market condition.

True Range Bands Indicator for MT4: Buy Conditions

True Range Bands buy signal
  • The price breaks above the higher band
  • A bullish candlestick or a false-break pattern forms at the lower band (oversold) area
  • Exit long when the trade achieves a 2R profit

True Range Bands Indicator for MT4: Sell Conditions

True Range Bands sell signal
  • The price moves below the lower band
  • A bearish price reversal pattern forms at the higher band(overbought) level
  • Target at least 2R profit before closing orders

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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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