TMA Centered Bands Indicator
The TMA Centered Bands indicator shows the general trend direction by drawing bands.
The TMA Centered Bands indicator for MT5 draws bands on the chart and shows the overall price trend. It displays three stripes of pink, Light-blue and pink-Light-blue.
The top stripe is drawn in pink, the bottom stripe in light blue, and the middle stripe changes its color from pink to light blue. The bands are made up of moving averages, and each of them has an MA period. The name TMA comes from triangular moving averages as the indicator draws triangular bands.
The price will fluctuate between these bands whenever the trend changes direction, thus creating entry and exit points.
How to trade with the TMA Centered Bands indicator?
The TMA Centered Bands indicator uses the strength of the moving average to draw bands on the chart.
Each band has a different functionality. For example, when the price rises above the upper band, there is a chance that it will reverse. Similarly, when the price drops below the lower band, there is a possibility of a reversal. The middle band measures the trend and turns Light-blue or pink depending on the direction of the trend.
When the price rises above the upper band, you can go short. On the other hand, you can enter long positions when the price falls below the lower band. The middle band acts as an intermediary between the upper and lower bands. Whenever a trend changes its path, it turns pink or Light-blue. Light-blue signals an uptrend, while pink signals a downtrend.
TMA Centered bands buy strategy
The price should go below the lower band.
Wait for the price trend to continue its route.
Enter the long trade at the lower band.
Place a stop-loss near the low of an entry point.
Exit the trade when the middle band turns pink.
TMA Centered bands sell strategy
The price should go above the upper band.
Wait for the price trend to continue its route.
Enter the short trade at the upper band.
Place a stop-loss near the high of an entry point.
Exit the trade when the middle band turns Light-blue.
Conclusion
The TMA Centered Bands indicator works on any time frame, so you can use it in all trading strategies. In addition, the indicator gives you a general picture of the direction of the trend. Since there is no Holy Grail system, there is a possibility of losing with the indicator. You can also combine the TMA Centered Bands indicator with confirmation indicators such as moving averages or RSI for further trend confirmation.
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