There are many ways to grab some pips in the currency market and one of such means is using the Bollinger Bands Bicolor Metatrader 4 Forex system indicator.
In order to get an accurate picture of the market’s volatility, while also taking note of overbought or oversold conditions, the Bollinger Bands Bicolor MT4 trading indicator comes to mind.
The Bollinger Bands Bicolor Metatrader 4 Forex indicator can make you many pips every day.
Read more below how to combine it with the Stochastic oscillator, it’s a powerful Forex system that works!
- In order to interpret its signals, the indicator deploys two color schemes, where widening of the outer bands can be mostly green or red based on the direction price intends to take.
- Primarily, the colors of the outer bands can be green indicating bullish sentiments, while mostly red outer bands color denotes bearish sentiments.
- The absence of volatility in the market is usually marked by a narrow band (signifying a range-bound market condition), while widening of the band is an indication that the market is starting to trend again.
Feel free to explore the Bollinger Bands Bicolor Forex indicator’s different parameters and settings to create your own personalized indicator setup.
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Bollinger Bands Bicolor Forex Indicator Chart (USD/CHF M30 Chart Example)
Here’s an example of how the indicator should look like when loaded onto the Metatrader 4 chart.
Finding Buy and Sell Triggers With The Bollinger Bands Bicolor MT4 Indicator
Buy Signal: Go long when price signals a bullish breakout pattern and the Bollinger Bands Bicolor MT4 indicator outer bands widen, with price opening & closing above the mid-light-sea-green line. The color of the outer band becomes largely green while this is happening.
Wait for the red dotted line of the Stochastic indicator to cross below the light-sea-green line when around the 20-horizontal level (oversold).
Sell Signal: Go short when price signals a bearish breakout pattern and the Bollinger Bands Bicolor MT4 indicator outer bands widen, with price opening & closing below the mid-light-sea-green line. The color of the outer band becomes largely red while this is going on
Wait for the red dotted line of the Stochastic indicator to cross above the light-sea-green line when around the 80-horizontal level (overbought).
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, the Bollinger Bands Bicolor MT4 Indicator bands contracts/squeezes.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, the Bollinger Bands Bicolor MT4 Indicator bands contracts/squeezes.
Tips: The Bollinger Bands Bicolor MT4 indicator can be deployed as a standalone technical tool but it’s recommended to combine it with additional indicators.
Hence the reason why we added the Stochastic Oscillator indicator to its buy & sell trade setup rules (better performance).
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Period, decal band, e type band.
More Info About This Indicator
Tradable Currency pairs: Any
Trading Platform: MT4
Time frames: M1, M5, M15, M30, H1, H4, D1, W1
Indicator Type: Bollinger Bands
Copy and paste the indicator in the MT4 indicators data folder.
Then restart the MT4 terminal and attach it to any chart.