MASR Bands Manual

MASR Bands Manual

15 October 2018, 19:22
Muhammad Elbermawi
1
325

MASR Bands


Or Moving Average Support Resistance Bands.

MASR Bands is a simple moving average surrounded with two bands that work together as a support and resistance levels. Here is how it is calculated in steps:

  • The first step to calculate MASR Bands is to find the difference between price candles highest high & lowest low for an X period of time.
  • The second step is to find the difference between them.
  • The third step is to calculate a cumulative average for the difference, so we have the range in which price move in ratio rather than points.
  • Next is to multiply this ratio with simple moving average with the same X period of time like highest high & lowest low calculations in first step.
  • And the last step is to add the result from the previous step to the moving average to get the upper band (Resistance Bands) & to subtract it from the moving average to get the lower Bands (Support Band).
  • I call the upper band MAR which is a shortcut for Moving Average Resistance. I call the upper band MAS which is a shortcut for Moving Average Support. The simple moving average in between the bands is called The Center Line.

MASR Bands is like most of Band indicators. It consists of three line studies. The center line is a simple moving average. The other two line studies are calculated by adding / subtracting a volatility index from the center line.

What make MASR Bands so special is the volatility index, which depend in its calculation on the range of the complete swing movement rather than the movement from on bar to another like Average True Range or Standard Deviation calculations.

After testing MASR Bands, I found that price candles stay in between MASR Bands upper and lower levels 93% of the time on average. This means that MASR Bands have a real support / resistance levels that can generate profits with good RRR.

MASR Bands

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For all our happy customers who bought TDO version 5, you can have your /// FREE /// copy from MASR Bands signed specially for you with your name on it.INBOX for more details.

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  1. Buy TDO from Here: https://www.mql5.com/en/market/product/12914
  2. Add you review as a happy customer + 5 stars
  3. Inbox me with your name in English to code your copy from MASR Bands

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Adding psychological Factor

How many times have you heard a trader's guru who remembers you that you are responsible about your trading results? You are responsible about your big profits, small profits, small losses and big losses. Trading is all about your mindset and your emotional modem.

That is why when I coded MASR Bands I replaced the original buy / sell arrows that is found with any similar tool with a new tool that show you when to buy or sell. This new tool is: YOUR NAME.

Your copy from MASR Bands will be signed with your name on it. So, your name will work as a buy / sell or no trade signal.

What is the number near your name?

The number near the name will show you how much far is the current price from the center line. It works like this:

  • If current price touch MAR, then it will read 100%.
  • If price touch the MAS, then it will read 0%.
  • If price exceed MAR, then it will read above 100% (ex: 110%).
  • If price exceed MAS, then it will read below 0% (ex: -10%).

MASR Bands as a reversal strategy

MASR Bands is a good trading tool for reversal strategies, because price candles stay in between the bands over 90% of the time. If price candles break outside the MAR or the MAS, then there is a great probability that price candles will revert back to meet the center line.

This strategy works well in low volatility time. Like scalping EURUSD in Asian session. You can also filter signals depending on a trend filter indicator like: ADX -  VHF or r-squared.

The probability for this strategy to work successfully is 65%, because price candles move in trends 35% of the time.

So the idea is so simple like that:

Low volatility + a breakout from MAS or MAR = revert to the center line

Setup for trading MASR Bands as a reversal strategy

Most of the time price candles will move in between the bands.
You will see your name in Gray.

MASR Bands

  • When price candles break the upper resistance band then there is a great probability (> 65%) that it will return to the center line.
  • Close your trades on the first time price candles touch the center line.

MASR Bands

  • When price candles break the lower support band then there is a great probability (> 65%) that it will return to the middle line.
  • Close your trades on the first time price candles touch the center line.

MASR Bands

Of course not every trade you take will be profitable. And this is a strong reason for you to have a robust money management system.

MASR Bands as a continuation strategy

TDO & MASR Bands Strategy

TDO is good tool for defining trend and catching momentum. It can be combined with other technical analysis tools to create robust trading strategies. One of the best indicators that work fine with TDO and generate good signals with high Return to Risk Ratio (RRR) is Moving Average Support Resistance Bands (MASR Bands).
You can read TDO Manual from Here:
https://www.mql5.com/en/blogs/post/717970
You can find TDO Here:
https://www.mql5.com/en/market/product/12914

How to use MASR Bands with TDO?

Setup for Long positions

  • Wait for TDO Buy signal.
  • Use most recent trough as a stop loss.
  • Use MASR Bands Resistance as a target.
  • Take the trade only when RRR is good (> 1:1).

MASR Bands & TDO

MASR Bands & TDO

Setup for Short positions

  • Wait for TDO Sell signal.
  • Use most recent peak as a stop loss.
  • Use MASR Bands Support as a target.
  • Take the trade only when RRR is good (> 1:1).

MASR Bands & TDO

MASR Bands& TDO

As you can see from examples that RRR is greater than 1:1 most of the time. This leads to success rate less than 50% but a good profit factor.

You can use Center Line as a trailing stop. This will eliminate losses and make some profits even if target is miss.

I hope you fine TDO & MASR Bands a good investment tools for you.

TDO Parameters

- 1) MASR Line Inputs

  • MASR Moving Average Method: choose between moving average method used in calculation. Default is Simple.
  • MASR Price: price used in calculation (Open, High, Low…). Default is Close.
  • MASR Bars: number of bars or candles used in calculation. Default is 40 bars.

- 2) Alerts Setting

  • Alert: Users can choose to see an alert message when a new trading signal appears on the chart. Default is yes.
  • Send e-Mail: Users can choose to see an email to his inbox when a new trading signal appears on the chart. Default is no.
  • Send Notification: Users can choose to send push notifications to the mobile terminals. Default is no.

- 3) Sign Setting

  • Sign Corner: User can change the corner to see his name in. Default is Upper Right Chart Corner.
  • Sign Font Size: Default is 12.

- 4) Color Setting

  • Support Resistance Color: Default is Navy.
  • First Shadow Color: Default is Dodger Blue.
  • Second Shadow Color: Default is Lavender.
  • Middle Line Color: Default is White.
  • No signal Color: Default is Gray.
  • Buy signal Color: Default is Green.
  • Sell signal Color: Default is Red.

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For all our happy customers who bought TDO version 4, you can have your /// FREE /// copy from MASR Bands signed specially for you with your name on it.INBOX for more details.

=======================================================================================

  1. Buy TDO from Here: https://www.mql5.com/en/market/product/12914
  2. Add you review as a happy customer + 5 stars
  3. Inbox me with your name in English to code your copy from MASR Bands

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I hope you find MASR Bands a good tool for you as it is for me. Do not hesitate to inbox me if you have any question about MASR Bands.

Regards

Muhammad Al Bermaui, CMT

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