Mogalef Bands

Mogalef Bands were developed by French trader Eric Lefort. These bands help identify important resistance and support levels by projecting the trading zone into the future.

This indicator is primarily used in Day trading on futures and CFDs.

Mogalef Bands consist of three lines:

• The center line, which is the weighted price level, identifies the theoretical center of the trading zone
• The upper line marks the theoretical highest price in the zone
• The lower line marks the theoretical lowest price in the zone

The upper and lower lines are based on the intrinsic volatility of the traded instrument.

Mogalef Bands remain unchanged as long as the value of the instrument stays between the upper and lower bands. They can remain unchanged for a long time if the volatility of the instrument remains stable. These bands widen when volatility increases.

Example

Interpretation

A buy signal occurs when the price breaks below the lower band without causing the bands to shift.

A sell signal occurs when the price breaks above the upper band without causing the bands to shift.

These signals should be filtered by a market trend indicator such as the Cycle indicator.
A buy signal is valid if the trend is bullish, and conversely for a sell signal.