Introducing ADX WMA Bands indicator. ADX WMA Bands is a forex technical indicator, it is one of the simplest buy sell opportunity indicator. This indicator is also helpful when you are building a forex trading system. Most traders when building a trading system, they use various technical indicators and use ADX WMA bands for trend change alerts. This indicator is helpful in catching short-term swings and therefore should be used on shorter timeframes. You can make money using this indicator on any currency pair, either use it on multiple charts for less risk and more profits, it’s all up to you.
Install ADX WMA Bands indicator in your platform, your chart should look like this:
The ADX WMA Bands indicator works like Bollinger bands. The upper band has a grey color, it signals potential resistance. The lower band is also grey and works as potential support. In the middle, there’s a moving average that is light blue. The image above shows how signals are generated in a perfectly trending market. The upper cross of the moving average generated a good buy signal. Not every day the trend will just go straight bullish, so it’s important that you know about trending markets and trading range markets. The easiest method to know trends objectively is to use trend lines.
Conditions for buying using ADX WMA Bands indicator
- Use trend lines to identify the direction of the trend, confirm bullish.
- Confirm bullish shape of ADX WMA Bands indicator.
- Buy on price action buy signal (piercing pattern, dark cloud cover etc.).
- Place the stop below the signal bar or beyond support.
- Place the target at the zone of the upper band, or simply before the next resistance zone.
- Record Results and repeat.
Conditions for selling using ADX WMA Bands indicator
- Use trend lines to confirm the direction of the trend, confirm bearish.
- Confirm bearish shape of ADX WMA Bands indicator.
- Sell once a selling price action signal shows up (Piercing pattern, dark cloud cover etc.)
- Place the stop above the entry signal.
- Place the target at the zone of the lower band, or simply before the next support zone.
We would appreciate feedback if you decide to use this indicator, thanks for visiting our portal. Cheers.
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