Quantile Bands Indicator
Platform: MT4 Type: Channel Last update: August 24, 2024The Quantile Bands Indicator, as the names suggest, is a forex trading indicator based on quantiles.
What is that? Quantiles are cutpoints dividing the range of a probability distribution into contiguous intervals with equal probabilities. This concept is often used in statistics and the theory of probability.
To some extent, the indicators look quite similar to the Bollinger Bands and it works in the same manner.
How to trade with the quantile bands?
Signals provided by the Quantile Bands Indicator are really intuitive and will not cause you difficulties. Simply follow the suggestions below.
Buy Entry: Open long trade when the middle line turns color from grey to green and the triggering candle has closed. Place your stop loss a few pips below the last swing low.
Sell Entry: Open short trade when the middle line turns color from grey to orange and the triggering candle has closed. Place your stop loss a few pips below the last swing high.
Exit Trade / Take Profit: Close your open position when price reverse and close below the middle line, or use your own preferred method of trade exit.
Example of USD/JPY H1 Chart
This screenshot below shows an example of Quantile Bands forex indicator in action.
