Jump on the Bandwagon
- Indikatoren
- Donovan Kenneth Mackenzie
- Version: 1.1
- Aktualisiert: 8 September 2022
Most technical indicators work well during trending conditions. However, periodically the market will suddenly shift and go sideways until the trend either resumes or starts to reverse in the opposite direction. This is where this indicator comes into its own.
It is designed to avoid as many false signals as possible, especially during choppy markets. This assists the trader to navigate through these unfavourable conditions by delivering a minimal number of signals. This can help curb the temptation to keep adding to a trade which leads to over leveraging and ultimately that dreaded margin call.
Furthermore, this indicator can be used by traders of all levels of experience. It serves as a complete system, offering both trade entries and trade exits through on-chart arrows with matching signals. However, the use of proper risk management, market entry timing and an acceptable amount of trading psychology is highly recommended.
The Bandwagon Indicator can be used on any timeframe or as part of an existing setup. However, it is mainly used as a standalone indicator to help traders jump onto higher timeframe trends (as the name suggests).
Simply gauge the overall trend on the D1 chart then take a lower timeframe signal on the M5, M15 or M30 in line with this direction (see screenshots below). Concerning which symbols to use, Bandwagon can be used for Crypto, Stock, Metals or Forex trading. However, it is mostly used for trading the 29 Forex majors, minors and cross pairs.
3) Recommended Setups
Long Trade
1. The current time is between 01h00 – 11h00 EST.
2. Gauge with the eye and select a D1 chart that has been bullish over the last 3-4 weeks (see screenshot below).
3. Then move to a lower timeframe like the M5, M15 or M30 and wait for a long signal in line with D1.
4. Enter a market executed buy order or wait for a 2-3 candle pullback and enter on the retracement.
5. Set the stop loss at 3-5 pips below the last major swing level.
6. Set the take profit to a 2:1 risk/reward ratio or close the trade manually when the next opposite signal appears.
Short Trade
1. The current time is between 01h00 – 11h00 EST.
2. Gauge with the eye and select a D1 chart that has been bearish over the last 3-4 weeks (see screenshot below).
3. Then move to a lower timeframe like the M5, M15 or M30 and wait for a short signal in line with D1.
4. Enter a market executed sell order or wait for a 2-3 candle pullback and enter on the retracement.
5. Set the stop loss at 3-5 pips above the last major swing level.
6. Set the take profit to a 2:1 risk/reward ratio or close the trade manually when the next opposite signal appears.
