Using mathematical formulas, Marker Bands gives you signals for possible retracements, combined with a normalized trending band.
Using mathematic formulas to normalize the price combined with price volatility we have created bands to follow the market with its noise and to easily identify overbought and oversold areas. These areas may be used to predict possible reversal movements.
Combined with the bands, we have developed an advanced and adaptive algorithm, which gives you the chance to enter early in good operations. The main calculation attempts to indicate the best price for the future possible retracement.
These signals can be easily used for manual trading (short-term or long-term trading), scalping or binaries. It can be used in expert advisors as well.
Additional Important Feature
This indicator can facilitate the study of the signals and the conditions for your profits and risks, we have included an automatic calculation which shows the statistics for the potential movements. They are not to be used as real orders but gives you information about:
- The total number of operations, to know how many signals exists in the chart.
- The total number of good operations (consider bad operations can fail when the reversal does not occur within a short period of time due to a strong trend).
- Potential Average Profit: so you can know the average profitable movement after a correct predicted retracement.
- Potential Average Loss: so you can know the average lost movement when correct predicted retracement or when the signal fails.
The main purpose of this statistic is to help you to manage correctly your possible operations during the retracement, manage your Stop Loss level, and your Take Profit level.
Advices for Proper Use of Signals
- The signals are given when the candle is closed (when a new candle is opened). For low risk operations, you may use the High/Low from this closed Candle as Stop Loss (or around its value).
- The bands or its center are good targets for Take Profit levels.
- Reduce risks and bad operations by setting the Stop Loss to Breakeven as soon as possible. And consider to close in profits when the retracement looks over.
- The main goal for this algorithm is to achieve huge profitable movements and aggressive retracements. Do not take unnecessary risks and just wait for another signal to show up. You will get other chances for huge retracements if you are patient.
- Even if you are trading long-term timeframes, consider Lower Time Frames to find the perfect moment to collect your profits.
- Do not try to trade if the trend is strong. Retracements are weak when the price has a strong direction.
- Bands_Buffer - Volatility multiplier, to define the distance between the upper and lower band.
- Size_Arrow - Visual Arrow Size when signals are given.
- Sound Alerts - The indicator will alert when the signal appear. Alert example: "EURUSD - 60 | Marker Bands Bearish Signal".
- Show_Potential_Calculation - show the statistics and comments from the potential movement of the signals (check "Aditional Important Feature" for more information).
- This indicator DOES NOT REPAINT, it keeps all the signals. However, the potential calculation will be shown once the possible retracement is over (when a new arrow is created).
- The purpose of the Statistics is to show the average from potential movements, its not intended to simulate real operations.
- This indicator will be updated with more features, so do not forget to update it.
If you need more information, please contact us.