What is Market Watch?

Talking a little bit about the Market Watch indicator, this is an indicator that combines two indicators in MT4, ADX (25) and Bollinger Bands (2, 25). The main role of the indicator is to identify trading signals. If the Market Watch is red then we sell, if the Market Watch is green, we buy.

The figure below shows the interface of the indicator:


So now we are going to get into the trading system.

Trading system

Trend trading system, which includes signals from the following indicators:
  • The MA 13 and MA 25 crossovers are indicated by the blue and red arrows. The green signal is buying and the red signal is selling.
  • Trading signals from Market Watch.
The advantage of this system is that the exit point from Bollinger Bands is very clear and easy to recognize. And note more, we use this system for all currency pairs from the H1 frame-up.

The specific trading principles are as follows:

For sell orders
  • The arrow is red (shows the MA intersecting with a downtrend)
  • Market Watch is red
  • Note if at that moment the price is outside the band of the Bollinger indicator then we should not trade
For buy orders
  • The arrow is green (shows the MA intersecting an uptrend)
  • Market Watch is green
  • Note if at that moment the price is outside the band of the Bollinger indicator then we should not trade
Exit the command

Place stop loss above the mid-band for sell orders and below the mid-band for buy orders.

Place take profit in the upper or lower bands of the Bollinger Bands indicator.

An example of a buying strategy



On the red arrows, the price is out of band so we are not trading.

Sell strategy example


In this chart, we only have the red arrow in the middle that is valid for trading.