Watch the testing video here:
Quantile Bands Indicator
Intoduction to the Quantile Bands Indicator
The Quantile Bands Indicator, as the names suggest, is a forex trading indicator based on quantiles.
What is that? Quantiles are cutpoints dividing the range of a probability distribution into contiguous intervals with equal probabilities. This concept is often used in statistics and the theory of probability.
To some extent, the indicators look quite similar to the Bollinger Bands and it works in the same manner.
It fits all kinds of timeframes and currency pairs.
The default indicator settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences.
How does it work? How to apply in trading?
Trading Rules Explanation
Signals provided by the Quantile Bands Indicator are really intuitive and will not cause you difficulties. Simply follow the suggestions below.
Buy Entry: Open long trade when the middle line turns color from grey to green and the triggering candle has closed. Place your stop loss a few pips below the last swing low.
Sell Entry: Open short trade when the middle line turns color from grey to orange and the triggering candle has closed. Place your stop loss a few pips below the last swing high.
Exit Trade / Take Profit: Close your open position when price reverse and close below the middle line, or use your own preferred method of trade exit.
As always, to achieve good results, remember about proper money management. To be a profitable trader you need to master discipline, emotions, and psychology. It is crucial to know when to trade, but also when not to trade. Avoid trading during unfavorable times and market conditions like low volume/volatility conditions, beyond major sessions, exotic currency pairs, wider spread, etc.
How to set up the Quantile Bands indicator in MT4?
Download the Quantile Bands.rar archive at the bottom of this post, unpack it, then copy and paste the Quantile Bands.ex4 or Quantile Bands.mq4 indicator files into the MQL4 folder of the Metatrader 4 trading platform.
You can gain access to this folder by clicking the top menu options, which goes as follows:
File > Open Data Folder > MQL4 > Indicators (paste here).
Now go to the left side of your MT4 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.
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