The Bat Method applies Average True Range (ATR) trailing stop in order to identify the mode of the current market trend and plots possible trade entry signals using its dynamic bands. Since it is a single indicator technique, it offers a great simplicity in trend-based trading operations for the newbie traders who struggle at the market in finding the correct direction of the market trends.
The Bat Method can be used to trade any forex currency pair you like across the financial market. Besides, this indicator can be applied at any timeframe chart while trading in the market.
The Bat Method Overview
After the installation of The Bat Method at the Metatrader 4 platform, your trading chart will appear like the following image:
The Bat Method Explanation
The Bat Method projects possible trend directions using dynamic colored bands around the price bar. The indicator turns blue and the price keeps closing above its level representing the bullish trend along with the confirmation of a possible buy entry at the market. On the other hand, it turns red and the price bar successfully manages to close below its level is considered as a sell entry opportunity along with the bearish trend. These bands are treated as the stop positions of market trends.
Also Read: Winning Profitable System
The Bat Method: Trade Conditions
- A bullish bar forms above the indicator level
- The band turns blue
- Buy triggers when the above conditions are met and the high of the respective bullish candle is broken by the following price bars at the same time
- Set stop loss below the low of the signaling candle
- Exit long/take profit whenever the price breaks below the lower band
- A bearish bar forms below the indicator level
- The band turns red
- Sell triggers when the above conditions are met and the low of the respective bearish candle is broken by the following price bars at the same time
- Set stop loss above the high of the signaling candle
- Exit short/take profit whenever the price breaks above the higher band
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how do you install the bat method trading system on mt4?