BB Wave Trading System

BB Wave Trading System

In this article we will present a trading strategy based on customized indicators for MetaTrader 4. It is actually a system for medium-to-long-term operations (graphics H4 and 1 D) which can be useful for traders who prefer these time frames because of their lower market noise and have the patience to wait for input signals.

It is a strategy with 2 variants, a trend tracking, which logically has a greater potential for benefits, and another to take advantage of movements against trend, ie corrections of trends, which also have a good potential.

In the image above we see an example of a purchase signal for an operation in the same direction as the market trend and a sales signal to open a position in the opposite direction to the upward trend.

In the signal that is produced in the direction of the trend, green candles are observed that close above the exponential moving average of 34 periods calculated on the maximum price (green line), which indicates that we are facing a movement of upward trend that are likely to continue.

In the countertrend signal, it is observed that the price has risen with strength and is between the second and third deviation of the Bollinger bands. In addition, the RSI and WR% indicators are emerging from overpurchase areas, increasing the likelihood of a bearish countertrend movement.

Final considerations

When you open positions in favor of the trend, it is important to take into account the levels of the Bollinger bands for the outputs. For the first profit-taking goal, you can use the middle level of Bollinger bands while the second profit-making target can be placed in the second or third diversion of Bollinger bands.

You can download the template and custom indicators the strategy in the following links:

-BB Wave Trading system

Note: template files (TPL) are placed in the Templates folder, while the custom flags (.exe and mq4) files must be copied to the indicators folder.