The Forex Blau Balance Indicator is an indicator that incorporates both momentum and volatility elements. It’s useful for finding potential points of entry and exit. The Blau Balance indicator is based on the intersection of two moving averages (a slow-moving average and a fast-moving average) at key transition moments in market price. Depending on which is higher, the indicator will either turn green to indicate a buy or red to indicate a sell. Here we’ll talk about the Forex Blau Balance Indicator and a potential trading strategy with it.
What is the Forex Blau Balance Indicator?
Forex Blau Balance is an oscillator-style indicator that can be found in the lower chart window. The indicator claims to be a trend-following one in the forex market. Its purpose is to recognize market trends, choose reliable trade signals, and direct traders toward successful trade closures. The three components that make up the indicator are:
- Average Blau Range: Primarily used to determine the possible range of market trends. When it breaks out above or below the Blau MA, it indicates that the current trend may be changing direction.
- Blau MA: It is used to detect the trend in a straightforward way. The trend is bullish as long as it remains above the Average Blau Range. Contrarily, a bearish market trend would be indicated by the Blau MA continuing to fall below the Average Blau Range.
- Blau Balance: It serves as the indicator’s most important component. A green Blau MA indicates a buy entry in line with the bullish trend. Conversely, a red Blau MA suggests a possible short trade in the direction of the bearish trend.
With this indicator, you’ll know when to open and close a trade with accuracy since it provides both entry and exit points for the forex market.
Forex Blau Balance Indicator Strategy
This Forex Blau Balance Indicator Strategy is straightforward and simple to use. As soon as a green Forex Blau Balance shows on the chart, traders may place buy orders. Protect your trade by setting your stop loss a few pips just below the most recent swing low price. However, if a red Forex Blau Balance shows on the chart, traders may enter the markets for a sell trade. Traders should set a stop-loss order a few pips above the most recent swing high price. You may use the opposite trading signal (from buy to sell or from sell to buy) on the chart to get out of the trades, or any other strategy you choose.
The Forex Blau Indicator works with all currency pairings and time frames currently available in the forex market. The indicator’s settings can be modified to suit your preferences, but the default values should be sufficient for generating reliable trading signals and opportunities.
- Wait until the Average Blau Range goes above the Blau MA.
- Verify that the Blau Balance’s color is green.
- You may open buy positions when the above conditions are met.
- You may set a stop-loss order close to or below the low of the current range.
- Take profit once the Blau Balance goes red or according to your personal money management approach.
- Wait until the Average Blau Range surpasses the Blau MA.
- Verify that the color of the Blau Balance is red.
- You may enter a sell position when the above conditions are met.
- Place stop-loss orders close to or above the current range high.
- You may take profit once the Blau Balance goes green or according to your personal money management approach.
Forex Blau Balance Indicator Pros & Cons
- It also functions as a filter for trade signals.
- Forex Blau Balance Indicator signals are not repainted and do not vanish.
- It should be used with input filters on other indicators since it is not totally dependable on its own.
- It is a lagging indicator, which means it may confirm a trend only after it has already begun.
- It may provide false signals in a volatile or non-trending market, causing traders to incur losses.
Finally, the Forex Blau Balance Indicator may be used as an input signal source or to show trend channels across all timeframes and currency pairs. While the Forex Blau Balance indicator is a useful tool, it is important to keep reasonable expectations when trading. Similar to other technical analysis tools, it has its limitations and cannot provide reliable signals all the time. As a result, this forex indicator occasionally provides misleading signals. Depending on the state of the market, its effectiveness will differ greatly. You may use it as the basis for your own trading system.
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