Battle of the Bands | Forex Indicator Download - MT4/MT5 Resources

This is a momentum-based system using only a few indicators. The rules are easy to follow and cover all the bases so there won't be any questions. The indicators I use are:

1.32 sma (high) / 32 sma (low)

2. Parabolic SAR

3. 100 and 200 SMA (Close)

I had a few years of Forex experience but due to the smaller account size I closed it and focused more on my larger stock trading account. It was during that time that I developed this system. As far as I know, there's nothing quite like it, so I think you'll find it to be unique and profitable.

The system has only been tested on stocks, but with some simple backtesting it looks promising on Forex as well, and a demo trade will be posted here as an example.

This is a system rule

Long entry:

* Price must close above the 32 moving average high or the 100/200 moving average

* Price must close with green bar
* Allow doji or pin bar (ignored)
* Price must break above the Parabolic SAR
* If the price closes on a red bar, or a doji/pin bar, wait for the next candle to break above the previous candle's high and make sure all the above conditions are true.

Short entry:

* The closing price must be below the 32 moving average low or the 100/200 moving average

* The closing price must be a red bar

* Allow doji or pin bar (ignored)
* Price must break above the Parabolic SAR
* If the price closes as a green bar, or a doji/pin bar, wait for the next candle to break the low of the previous candle and make sure all the above conditions are true.

Horizontal expansion:

* If you make a profit, close 1/2 of the position on the next bar and move your stop loss to breakeven. If you don't make a profit on the next bar, wait patiently until you do. You either make at least 1/2 your profit or you get stopped out

Stops:

* Once you have made 1/2 profit and your stop loss is at breakeven, move your stop loss up to the parabolic sar value for each new candle as long as the parabolic sar value is greater than the value of your initial entry. This is basically a trailing stop done manually.

*(Optional) If you are long and the candle closes as a doji, pin bar, or red bar, immediately move your stop to the entry candle low. This will greatly reduce the risk of dollar losses, but may also increase the chance of being stopped before the market reaches new highs. That's why I left this rule optional.

Re-enter:

* If you feel like you have been unfairly stopped, haha, and think the market has more room to go, the rules for your re-entry are: 1) Breakout of the previous candle high 2) Price must be above the sar, and 3) Price must be at least above the 32 high. Your stops work the same way as above.

The disadvantage of this system, as with any moving average based system, is that it lags the price, so sometimes you will find yourself buying at the top or selling at the bottom. I have worked with many different MAs and found that 32sma works best. It's a good combination, not too unstable, but not too slow either. This is why we use the Parabolic SAR as stops because they are usually far enough away that if the market does move in the desired direction, only a small correction will occur before a big move up, giving you the appropriate amount of room. I most like to use this system on 1 hour charts and daily charts. Anything less than 1 hour is at your discretion.

To keep it simple, I will only trade the three major currencies: EU, GU, UJ

I have made three videos on how to trade this system. For those who use Skype and want to learn more. PM me. My handle is big_pipin