Starc Bands Indicator

Starc Bands Indicator

The Starc Indicator for MT5 is a powerful Forex trading tool that can greatly increase your profitable trades, especially when used correctly. Volatility and Trend reversal indicator for MT5.

The Starc (Stoller Average Range Channels) Band indicator for MetaTrader 5 is the best Forex trading tool for trend reversal trading. This technical indicator is similar to Bollinger Bands because it also encloses the price within its boundaries.

The Starc Bands indicator has three bands. The upper and lower bands consist of simple moving averages (SMA). The simple moving average is the basis of this indicator. Both bands are then plotted by adding/subtracting the average true range (ATR) to the SMA. The ATR value is added to the SMA to form an upper band and subtracted from the SMA to form a lower band.

The indicator can be useful for identifying levels that are likely to reverse for an optimal trade entry (OTE). It performs all technical analysis in the background and displays the results on the chart, thus making trading easier. This means that both new and experienced traders can benefit from this MT5 indicator.

The bands respond to market sentiment by shrinking or widening depending on the fluctuations in the built-in ATR. This, in turn, will help you get a clearer picture of the upper and lower price limits.

This valuable price cap information can be used to enter or exit a trade with high probability. The Starc Bands indicator looks great on the chart and is ideal for scalping, daily/intraday and swing trading.

Starc Bands Indicator BUY/SELL Signals

The picture above shows how the Starc Band indicator looks on a forex chart. You can use this indicator to make high probability winning trades with little or no knowledge of price action, or in combination with other trading tools.

The Starc Band Indicator for MT5 sets price action boundaries with upper and lower bands that act as overbought and oversold areas. The middle dotted line indicates the direction of the trend – bullish or bearish. A price above the middle line is bullish and vice versa.

For example, when the price touches the lower band, it indicates that the price is likely to turn up. For a valid BUY opportunity, wait until price touches the lower band and shows signs of strong rejection (long wick). You may consider entering a BUY/LONG position if the NEXT candle (after the first rejection) that closes is bullish (GREEN) and is also showing signs of rejection.

The same principle applies to a SELL signal. Wait until the price reaches the upper band of the Starc indicator with a downward deviation of the wick visible. You can SELL/SHORT the asset if the NEXT candle that closes is bearish (RED) and also has a visible wick.

We tend to open a position only when we find an advantage in the market. For example, a double wick rejection on the lower band is strong price action. Waiting for a bullish candle to form is another confirmation that the market is ready to BUY. Also, the indicator works best when used on higher timeframes.

Conclusion
The Starc Indicator for MT5 is a powerful Forex trading tool that can greatly increase your profitable trades, especially when used correctly. The indicator is free to download, so give it a try now.