Adaptive Smart Bands
Adaptive Smart Bands is one of the most powerful indicators in the market. It was developed to trade in TRENDING as well as NON TRENDING markets. The development of this indicator was inspired by Richard Dennis's Turtle Trading Strategy. Richard Dennis borrowed $1,600 from his family and reportedly made $200 million in about ten years.
With default settings, Adaptive Smart Bands successfully helps in determining the direction of the trend and identify dynamic support & resistance. This indicator can also be used like bollinger bands to predict future breakouts.
Why choose Adaptive Smart Bands?
- Based on price action
- Less but more accurate signals
- Extremely good at determining the long term trend
- Helps determine dynamic support and resistance level
- Can be combined with other systems
- Works best when used as a tool, rather than a system
- No Repainting
- Push Notification
- Email Alert
- Recommended for manual trading
- Can be Integrated in Expert Advisor
Before you enter into any trade, it is highly recommended you do a quick fundamental analysis and prepare yourself for any big economic news. This makes it sure that you don't face any unexpected volatility.
Adaptive Smart Bands tries to predict market based on past price movements. Fundamental analysis can greatly improve the number of wins and help you avoid any unfavorable market conditions.
If you are completely unfamiliar with fundamental analysis, you can just keep an eye on the economic calendar and avoid making new trades during High-Impact news. You can also put a StopLoss on your existing profitable trades and reduce your risk.
Using Adaptive Smart Bands
You can use Adaptive Smart Bands as a trend filter with other trading systems. This could greatly improve your chances of winning.
Buy when the center line turns green and sell when the center line turns red. You can also use it as a trend filter and buy or sell on pullbacks! The market often has small or big pullbacks after the color changes. Instead of opening the trade right after a green/red signal, you can wait for a pullback and get a better entry! The center line often acts like a dynamic support/resistance level. You can enter when the price is close to or touching the line with a tight stop loss, and make a good profit. Multi timeframe analysis could greatly boost the number of your wins.
You can either have fixed StopLoss and TakeProfit (1:2 risk/reward and above!) or you could have center line as dynamic stoploss.
Good win rate with good risk/reward ratio makes this indicator a perfect tool for trading.
When all the lines are flat for a long time, it often mean that market is ranging. You could buy or sell carefully on tops and bottoms using other indicators like RSI or stochastic or you could just wait and watch if the trend changes or not. Trading non trending and extreme volatile market can be very risky. Be extra cautious trading higher high and lower lows. It's best to avoid trading non trending and volatile marketing.
I highly recommend manually backtesting and getting yourself familiar with Adaptive Smart Bands. The more you practice, the more you will learn and develop the confidence to take better trades.
Have patience and never hurry to get into a trade or revenge a trade. You will have plenty of opportunities in future.
If you face any problem with this indicator, please feel free to contact me.
-Fixed Push notification for mobile