Author:
Meet Emilio Reale, a seasoned trader and a good friend of mine who asked me to share his innovative trading tool. He originally developed this indicator using MetaStock, and I’ve converted it for your convenience to use on MetaTrader 4.
Understanding the Super Bands
The primary purpose of these bands is to help you determine the ideal stop loss level when executing a breakout strategy. Over time, we’ve discovered two key insights:
- These bands can effectively trail your stop loss.
- They provide valuable signals regarding market volatility; when the bands are squeezed, it indicates heightened volatility, while opened bands suggest a more subdued market.
As illustrated in the image below, the bands also generate signals. You can use the pivot points of the bands for your entry points, while the opposite band can serve as a stop loss or trailing stop, adapting to the movements of the bands.
Image:
Check out this sample of the Super Bands in action!
Parameters to Consider
Adjusting the parameters according to the market you’re trading in is crucial:
- Period: Typically, a setting of 13 or 20 works well.
- Multiplier: For Forex, I use 1.5. For commodities like Oil or Gold, I recommend a multiplier of 1.7 or higher.
Your feedback and suggestions for improvements are always welcome. Thank you for your comments!
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