Price Border Indicator
Platform: MT4 Type: Channel Last update: December 8, 2024The Price Border Indicator for MT4 works in a similar manner to the Bollinger Bands indicator. That forex indicator plots a three-band price envelope that is able to identify potential swing high or swing low areas of the market. It is a suitable trading tool for both beginners and more advanced forex traders.
How to utilize the price border indicator?
Signals provided by the Price Border Indicator are really intuitive and will not cause you difficulties. When the price reaches the lower band of the indicator, it means an oversold market condition. You can treat it as dynamic support of the market. Similarly, when the price hits the upper band of the indicator, the market is considered to be in an overbought state. You can treat it as the dynamic resistance of the market. The mid-line works as the trend decider. Price floating above its level reflects still an ongoing bullish trend, and an opposite scenario represents an ongoing bearish trend.
Buy Signal
Follow these steps for a long trade:
- Slope of the Price Border indicator is upwards
- Price hits and rejects lower band of the Price Border
- An bullish candlestick pattern forms
- Price swings higher from recent low swing
- Buy trade is triggered after the above conditions are met
- Set stop loss a few pips below the last swing low of the market
- Take profit or exit whenever the price hits opposite band of the Price Border indicator or use your own method of trade exit
Sell Signal
Follow these steps for a short trade:
- Slope of the Price Border indicator is downwards
- Price hits and rejects upper band of the Price Border
- An bearish candlestick pattern forms
- Price swings lower from recent high swing
- Sell trade is triggered after the above conditions are met
- Set stop loss a few pips above the last swing high of the market
- Take profit or exit whenever the price hits opposite band of the Price Border indicator or use your own method of trade exit
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