Price Border is an indicator that can be used in conjunction with any forex trading system or strategy to provide further confirmation for trade entry or exit points. Just like Bollinger Bands, the Price Border Indicator helps you keep an eye on the market’s volatility. The forex indicator displays a three-band price envelope that can be used to detect possible swing-high and swing-low zones in the market. It’s great for both beginner and expert forex traders because of its versatility. The Price Border Indicator can be used with a wide variety of time frames and currency pairs.
What is the Price Border Indicator?
The Price Border indicator draws a three-band price envelope that can be used to spot potential swing-high and swing-low zones in the market. You can also use these points as indicators of dynamic market support and resistance. This indicator can help identify market movements by using its mid-band. Hence, it is also a trend-following indicator. It’s a great tool for beginner traders because of how easy it is to use and how the trade signals can be presented. The Price Border Indicator can work well with all of the major forex currency pairs now traded on the world’s financial markets.
Price Border Indicator Strategy
To a large extent, the Price Border Indicator performs similarly to Bollinger Bands. The oversold condition of the market is represented by its lower band, which acts as dynamic support for the market. The upper band level represents an overbought market condition and acts as a dynamic resistance. In this case, the band determining the trend is the mid-band. If the price closes the day above the level, it indicates that the uptrend is still in effect, while a close below the level signals that the bearish trend is still in effect. Mastering discipline, emotions, and psychology are essential for making money in trading. Knowing both when to trade and when to sit on your hands is essential. You should stay out of the market during unfavorable times and conditions, such as when volume and volatility are low when trading outside of the major sessions when dealing with exotic currency pairs, wider spreads, etc.
Buy Signal
- Check if the candles form directly above the lower band.
- Initiate the buy trade when the corresponding signaling candle’s high is broken.
- Place the stop loss below the lower band level.
- Hold the long position if the price breaks above the middle band.
- Exit long/take profit when the price reaches the upper Band.
Sell Signal
- Check if the candles form directly below the upper band.
- initiate the sell trade when the corresponding signaling candle’s low is broken.
- Place the stop loss above the upper band level.
- Hold the short position if the price breaks below the middle band.
- Exit long/take profit when the price reaches the lower Band.
Price Border Indicator Pros & Cons
Pros
- It functions well with most major Forex currency pairs.
- It operates on both lower and higher timeframes.
- The indicator is appropriate for scalping, intraday trading, and swing trading.
- The Price bands never repaint
- It sends out alerts when prices cross the bands.
- Price bands can be used as dynamic support and resistance levels.
Cons
- It generates several misleading signals in ranging markets.
Conclusion
Feel free to use your preferred trade entry, stop loss, and take profit strategy while trading with the Price Border indicator. Trade in the same direction as the main trend and use a demo account first to make sure you understand how the indicator works. Keep in mind that not even the best trading indicator can ensure consistent success. As a result, this forex indicator sometimes generates misleading signals. How well it does depends heavily on the market’s overall condition and your trading skills along with your money management strategy.
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