Ama Bands is a forex trading indicator. The Ama bands indicator is based on bands, Bollinger bands you can say. It is with the help of these bands traders make money. This indicator is simple and powerful. A trader can rely on this indicator alone to make consistently money in the forex market. The Ama bands can be used to trade on any time frame and with any currency pairs. The Ama bands consist of many bands which work as support and resistance. This simple forex trading indicator is equally useful to the pro traders as well to the newbie traders. When you are trading in a lower time frame make sure that the corresponding higher time frame is trending in your direction. Do not ever trade against the trend. Yes, there are count trend trading indicators as well but they are risky. So it’s wise and smart to follow the trend and make money.
You need to extra careful when trading with this indicator as you may sometimes act to the false signals. Rather than looking for the crossovers of the price and the mid band you should look for the color of the mid band. It tells a lot about the market scenario.
When you install Ama bands indicator in your metatrader 4, your chart should look like this:
- Ama bands
Ama bands consist of several bands which have their own role. The main significant band is the middle band which helps you find the direction of the market. When the market is up the mid band is blue and when the market is down the mid band is red. You should buy when the market is above the mid band and vice versa. The top band works as a good resistance level while the lowest band works as a support level. But do not distract yourself by looking at all those bands just look for the color of the middle band.
Buying Conditions Using Ama bands.
- Market should be up trending.
- When the market crosses above the mid band place your buy position.
- Place your stop loss just below the recent swing low.
- Take your profit when the mid band turns red.
Selling Conditions Using Ama Bands.
- Market should be down trending.
- When the market crosses below the mid band place your sell position.
- Place your stop loss just above the recent swing high.
- Take your profit when the mid band turns blue.
Download Free Forex Ama Bands Indicator
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