The low-pass BB bands MT4 indicator provides buy and sell signals based on a modified version of the popular Bollinger bands technical indicator.
The indicator is composed of 3 Bollinger Bands:
- The upper red Bollinger Band
- The middle line
- The lower green Bollinger Band
The low-pass BB indicator paints magenta and aqua colored dots on the activity chart.
- An aqua colored dot appears when the price touches the upper red band.
- A magenta colored dot appears when the price touches the lower green band.
The low-pass BB bands MT4 can be useful for both scalpers and intraday traders.
Feel free to experiment with the different indicators’ input settings to suit your needs and preferences.
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Download the “low-pass-bands-sync-filters-mtf.ex4” MT4 indicator
Indicator Chart (GBP/USD M15)
The GBP/USD 15-Minute chart below displays the Low Pass Signals Bollinger Bands Metatrader 4 forex indicator in action.
Basic Trading Signals
Signals from the Low Pass Signals Bollinger Bands MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Initiate a buy trade when the Low Pass Signals Bollinger Bands paints a magenta dot below the candlestick.
Place a stop loss below support or use your own preferred SL method.
Close the trade at the upper red Bollinger band.
Sell Signal: Initiate a sell trade when the Low Pass Signals Bollinger Bands paints an aqua dot above the candlestick.
Place a stop loss above resistance or use your own preferred SL method.
Close the trade at the lower green Bollinger Band.
Zero-Lag MA + Low-Pass Bollinger Bands Forex Trading Strategy
This MT4 strategy combines the Low-Pass Bollinger Bands Indicator and the Zero-Lag Moving Average Indicator.
It helps you identify smoother trends and avoid the noise of fast price movements.
The Low-Pass Bollinger Bands create magenta dots for buy signals and aqua dots for sell signals.
The zero-lag MA confirms the trend direction by keeping you on the bullish side when the price is above it and on the bearish side when the price is below it.
This combination works well on M5 and M15 charts and is suitable for intraday traders who want a simple and reliable confirmation system.
Why This Combination Works
The Low-Pass Bollinger Bands smooth out volatility and focus on meaningful price swings.
The zero-lag MA reduces delay and shows the real market direction quickly.
Using both indicators together helps you avoid weak signals, trade in the dominant trend direction, and time entries more accurately.
Buy Entry Rules
- Wait for a magenta dot from the Low-Pass Bollinger Bands.
- Confirm that the price is above the zero-lag MA.
- Enter a buy trade at the close of the candle with the magenta dot.
- Place the stop loss a few pips below the recent swing low or below the lower band.
- Take profit at a 1.5:1 or 2:1 reward-to-risk ratio, or target the upper band.
Sell Entry Rules
- Wait for an aqua dot from the Low-Pass Bollinger Bands.
- Confirm that the price is below the zero-lag MA.
- Enter a sell trade at the close of the candle with the aqua dot.
- Place the stop loss a few pips above the recent swing high or above the upper band.
- Take profit at a 1.5:1 or 2:1 reward-to-risk ratio, or target the lower band.
Advantages
- Clear entry signals that are easy to follow.
- The zero-lag MA offers fast trend confirmation.
- Smoother bands help filter out choppy market conditions.
- Works well on several timeframes.
- Flexible profit targets using a fixed ratio or band touch.
Drawbacks
- Choppy markets can still generate false signals.
- Wider bands may produce larger stop losses.
- Trendless conditions reduce signal accuracy.
- Requires patience for the confluence of both indicators.
- It may be less effective on low-liquidity currency pairs.
Example Case Study 1
During the London session on EURUSD M5, the market was in a clean bullish phase with price holding above the zero-lag MA for several minutes.
A brief pullback formed a small corrective wave that touched the middle area of the Low-Pass Bollinger Bands.
Right at the end of the pullback, a magenta dot appeared, signaling potential continuation of the trend.
The candle closed above the zero-lag MA, confirming bullish strength and allowing a safe buy entry.
The stop loss was placed below the lower band to give the trade breathing room.
In the next few candles, EURUSD accelerated upward as volatility increased with the London flow.
The upper band widened, and the price pushed firmly in the direction of the main trend.
The take profit target of 1.5:1 was reached without any drawdown, and the structure continued to move up even after the target was hit.
Example Case Study 2
On GBPUSD M15 during early New York trading, the pair had been sliding lower for more than an hour, creating a smooth bearish environment.
Price stayed below the zero-lag MA, and each attempt to move higher resulted in quick rejections.
A moderate pullback formed toward the middle of the Low-Pass Bollinger Bands, and at the end of this correction, an aqua dot was printed.
This was the first clear signal that the downtrend might resume.
The candle closed below the zero-lag MA, making it an ideal moment to enter a sell trade.
A stop loss was placed just above the upper band.
Shortly after entering, the pair began dropping quickly as New York volume increased.
The lower band expanded downward, and the price followed with strong bearish candles.
The 2:1 take profit was hit cleanly, and the price continued falling for another 20 pips after the exit.
Strategy Tips
- Always trade in the direction of the zero-lag MA to reduce losing trades.
- Wait for the dot candle to close before entering.
- If the bands become extremely narrow, consider skipping the trade because momentum may be weak.
- Major pairs such as EURUSD and USDJPY often produce the most reliable signals.
- If you want more frequent opportunities, use M5. For more stability, use M15 or M30.
Download Now
Download the “low-pass-bands-sync-filters-mtf.ex4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (time frame, filter price, range period, up deviation, down deviation, show arrows, alerts on) Width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, Daily, Weekly, Monthly
Type: signal bands
