Target Bands Indicator

Target Bands Indicator

The Target Bands indicator for MT4 is a channel-like technical trading tool that detects an optimal zone for a trend reversal.

The Target Bands indicator for MetaTrader 4 is a channel-like technical trading tool that detects an optimal zone for a trend reversal. It comes with the upper and lower bands that serve as the exhaustion (overbought/oversold) zones of the price. In other words, the price may likely reverse when it touches any of the bands. Moreover, the price tends to also return to the bands after a breakout. The indicator was built with an algorithm that uses a default look-back period of 55 bars to evaluate the past behavior of the price to determine a potential trend reversal zone. Besides, it also comes with a buy/sell entry signal star. A star above/below the candlestick indicates a buy/sell signal. Furthermore, the indicator is suitable for scalpers and day/intraday forex traders. However, it is recommended to be used in synergy with price action/other technical indicators for better trade efficiency.

How to Trade With the Target Bands Indicator
The above image depicts the action of the indicator on the EURUSD currency pair in the M30 timeframe. It demonstrates how to combine the indicator’s signal with price action to identify a high-probability setup. Firstly, the image showed that the price broke out of the lower band, creating multiple wick rejections, which suggests a potential trend reversal. Secondly, the indicator painted a buy entry and the price returned into the bands, which further indicates an imminent trend reversal. Finally, the price formed a bullish engulfing pattern, a confirmation to open a buy position. The above principle was also applied to identify the sell setup and entry.

Conclusion
The Target Bands indicator for MT4 is a super-sensitive technical tool suitable for identifying trend reversals. Finally, you can download it for free today.