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The iBands Advanced Histo trading indicator is a trading algorithm, the calculations of which are based on the calculations of the standard Bollinger Bands forex indicator. The indicator is a trend indicator and thus its calculations are aimed at determining the strength and direction of the current trend. The indicator is presented in the lower window of the price chart as a histogram, which changes its color under certain market conditions. Taking into account the values of the indicator, the trend is determined, and at the same time the moment of opening a position.
The iBands Advanced Histo indicator is suitable for trading any currency pair on any timeframe.
Input parameters
There are several sections in the iBands Advanced Histo indicator settings. The Input Parameters section is responsible for its technical operation, the Colors section is responsible for its general visualization, and to add signal levels to the indicator window, the Levels section is used.
-PeriodIndicator - indicator calculation period. The default value is 20.
-ShiftIndicator - shift indicator values. The default value is 0.
-DeviationIndicator - current deviation of the indicator values from the standard. The default value is 2.0.
-AppliedPrice - a type of price to which the indicator calculations are applied. By default, it has the Close price value.
Indicator signals
The iBands Advanced Histo indicator is very easy to use and the algorithm of its application is similar to using similar histogram indicators. To open a certain trade, it should be taken into account the direction and strength of the current trend, which in turn are determined by taking into account the color of the indicator histogram. If the current trend is upward, open long positions, if the trend is downward, short positions. When the current trend changes, in both cases, trades are closed.
Signal for Buy trades:
- At least three bars of the histogram have a color with a growth value.
Upon receipt of such a condition on a signal candle, a buy trade can be opened, due to the presence of an uptrend. When the trend changes, namely, upon receipt of reverse conditions from the indicator, the trade should be closed and a new one should be considered.
Signal for Sell trades:
- At least three columns of the indicator's histogram have a color with a falling value.
A sell trade can be opened immediately upon receipt of such conditions on a signal candle. At this moment, a downtrend is determined in the market. At the moment of its change, namely, upon receipt of reverse conditions from the indicator, the trade should be closed. At this moment,it should be considered opening a new trade.
Conclusion
Although the iBands Advanced Histo indicator is very easy to use, its signals are very accurate due to the fact that its calculations are based on the use of an effective forex indicator. It is recommended to practice on a demo account before using the indicator on a real deposit.
