Border line Indicator plots a 3-band price envelope which is able to identify possible swing high or swing low area of the market. These levels can also be used as dynamic support and resistance of the market. This indicator is also able to define market trends using its mid-band thus, represents itself as a trend-following indicator as well. Its simplicity of use and easier way of expressing the trade signals offers great advantages for the newbie traders.
Border Line Indicator is quite suitable for trading any forex currency pairs available around the financial markets. Furthermore, this indicator fits with all sorts of timeframe charts within the MT4 trading platforms.
Border line Indicator works mostly like Bollinger Bands. Its lower band represents the oversold condition of the market thus works as dynamic support of the market. The upper band level is considered as the overbought condition of the market and works as the dynamic resistance of the market. The mid-band has been included as the trend decider. Price closing above its level means the market is still in the uptrend and an opposite scenario will represent the validity of the bearish trend of the market.
After the installation of Border Line Indicator at the MT4 terminal, our chart will appear like the lefts ide image:
- At least one or two bullish bar forms right above the lower band
- Trigger the buy entry at the break of the respective signaling bar’s high
- Set stop loss below the lower band level
- Hold the long entry if price successfully breaks above the mid-band
- Exit long/take profit whenever price hits the upper band
- At least one or two bearish bar forms right below the upper band
- Trigger the sell entry at the break of the respective signaling bar’s low
- Set stop loss above the upper band level
- Hold the short entry if price successfully breaks below the mid-band
- Exit short/take profit whenever price hits the lower band