Starc Bands is a trend-following forex trading indicator used to identify the overbought/oversold conditions of the market in order to determine the direction of the upcoming trends of the financial assets.
This indicator looks quite similar to the Bollinger Bands and works in the same manner for identifying potential trade opportunities for its users.
Starc Bands can be used to trade all kinds of forex currency pairs available around the financial markets. Besides, this indicator suits all sorts of timeframe charts within the MT4 terminal.
Starc Bands Indicator Overview
After the installation of Starc Bands at the MT4 platform, your trading chart will appear like the following image:
Starc Bands Indicator Explanation
Starc Bands has been designed with 3 different bands. The top band represents the overbought area of the market.
This is the place where traders look for possible sell opportunities with the intention of going short from the high of the market. The band at the bottom represents the oversold area of the market.
Price often intends to bounce upwards from this area and traders look for buy opportunities from such areas with an aim to capture better risk to reward ratio against the market entries.
The mid-band works as a trend decider. Price stays above this band signals the validity of the bullish trend and moves below the level to certify the trend as bearish.
Trending Indicator: Forex Pattern 123 Indicator
Starc Bands: Buy Conditions
- At least 2 bullish bars form right above the lower band
- Buy triggers at the break of the respective signaling bar’s high
- Set stop loss below the current low of the market momentum
- Exit long/take profit whenever at least 2 consecutive price bars close below the mid band
Starc Bands: Sell Conditions
- At least 2 bearish bars form right below the upper band
- Sell triggers at the break of the respective signaling bar’s low
- Set stop loss above the current high of the market momentum
- Exit short/take profit whenever at least 2 consecutive bullish bars close above the mid band