Midway through the market analysis tools, there are those that are an improved version, that is, a modification of the long known indicators. This includes the BBands Stop, which I want to tell you about today. By its name we can already guess that this instrument is based on the Bollinger bands popular among traders. The only difference is that if the Bollinger Bands have three lines, then Bands Stop has only one line. Depending on the price location relative to this line, signals are formed. Such an indicator is easier to work with than the classic BB. And this is especially important for beginner traders.

BBands Stop

ParametersSince the accuracy of the signals will depend on the indicator setting, you need to know about its parameters.BBands Stop parametersIndicator curve period is set using the parameter
Lenght.Deviation parameter is needed to set
Distance between the indicator line and the price level.Money-Risk – this variable allows you to specify the permissible
the degree of risk.In order to display pointers (arrows) on the chart
to the optimal point of entry into the market, you need to activate the Signal.parameterLine – display of the indicator line.N-Bars – parameter that defines the number of candlesticks that
must be used in the calculations.If you want the indicator to alert you of signals, then
you have to activate Sound-On.As you can see, there aren’t many parameters in the settings. But there’s a lot to work with.

How to trade on the BBands Stop indicator

Bands Stop on the price chartTo open a trade position you need to proceed as followsIf the yellow arrow appears on the chart, then
which means that the indicator recommends selling. At the opening of the next candle
you can open a sell deal.
And we’re placing a stop-loss
behind the yellow line. If, after a while, a green arrow appears on the graph
the open sell position is better to close.If the green arrow appears on the chart, then
you can consider opening a buy deal. We do it at the opening of the next candle. Stop-loss is placed behind the green line. At the time of…
appearance of an arrow of another color on the chart – fix profit.Not a single feature of installing an indicator in MT4. We’re doing this the usual way. Trading instruments and timeframes are at your discretion. I would recommend adding a filter for Bands Stop signals. It can be used to improve trade results. But first you have to test the strategy on a demo account.Indicator file can be downloaded here:BBand-Stop-AlertDownloadFyodorov’s Inga25.10.2019