TMA Centered Bands Indicator
Platform: MT4 Type: Channel Last update: September 25, 2024The TMA Centered Bands Indicator draws a trend-following price channel along with the dynamic support and resistance levels. It helps to understand the trend conditions and provides potential areas to enter the market.
Closer look on the TMA Centered Bands Indicator
As you can see, the TMA Centered Bands Indicator consists of the lower band, the upper band, and the center TMA trendline. That trendline is located in between these bands and defines whether the trend is bullish (the line is green) or bearish (the line is red). The bands act as dynamic support and resistance levels, and one should pay attention when a price rejects levels defined by these bands.
These are customizable inputs in the settings window:
Buy Signal
Follow these steps for a long trade:
- Price rejects the lower band
- Bullish price pattern is formed
- Meantime, the center TMA trendline turns green
- Buy trade is now triggered
- Set stop loss a few pips below the most recent market low
- Take profit after reaching opposite band use your own method of trade exit
Sell Signal
Follow these steps for a short trade:
- Price rejects the upper band
- Bearish price pattern is formed
- Meantime, the center TMA trendline turns red
- Sell trade is now triggered
- Set stop loss a few pips above the most recent market high
- Take profit after reaching opposite band use your own method of trade exit
