As the name suggests, the Bollinger Bands In Separate Window opens up in a bottom chart of the Metatrader 4 trading platform.
Moreover, this BB indicator gives you easy to follow buy & sell trading signals.
The indicator keeps the main trading chart clean and enables you to add additional technical indicators to predict trade entries and exits better.
Bollinger Bands is a versatile indicator that can be used in many different ways.
Key Points
- Bollinger Bands indicator in a separate window.
- Keeps the main chart clean.
- Can be used for trade entries & exits.
Free Download
Download the “bollinger-bands-bb-separate-window.ex4” MT4 indicator
Indicator Chart (EUR/USD H1)
The EUR/USD H1 chart below shows the Bollinger Bands In Separate Window indicator in action.
Basic Trading Signals
Signals from the Bollinger Bands In Separate Window indicator for Metatrader 4 are easy to interpret and goes as follows:
BUY:
- Open a buy trade position when the red signal line turns back above the 0.5 level.
- Place a stop loss 2-5 pips below trading support.
- Exit the buy trade near previous resistance.
SELL:
- Open a sell trade position when the red signal line turns back below the 0.5 level.
- Place a stop loss 2-5 pips above trading resistance.
- Exit the sell trade near previous support.
Bollinger Bands in Separate Window + Bykov Trend Signals Forex Scalping Strategy
This scalping strategy combines the Bollinger Bands in Separate Window Indicator for MT4 and the Bykov Trend Signals Indicator for MT4.
This setup is best used on timeframes between M5 and M15, and on major forex pairs with lower spreads such as EURUSD, USDJPY and AUDUSD.
Because this strategy focuses on quick trades, it is designed for scalping rather than holding trades overnight.
Buy Entry Rules
- Wait for the Bykov Trend Signals indicator to display an aqua arrow (bull‑trend confirmation).
- Then wait for the Bollinger Bands in the Separate Window indicator’s red signal line to turn back above the 0.5 level (momentum reversal/buy signal).
- Enter a buy trade at the close of the candle that confirms the above two signals.
- Set a stop loss around 8‑12 pips below the recent swing low (M5) or 12‑20 pips for M15, depending on the pair’s volatility.
- Take profit: Option A: target a small fixed amount (e.g., 15‑20 pips) given the scalping timeframe.
- Option B: Use a dynamic rule — for example, close half the trade at +10 pips and move the stop loss to breakeven, then aim for +20‑25 pips or close when the red signal line turns back below 0.5 or a magenta Bykov arrow appears.
Sell Entry Rules
- Wait for the Bykov Trend Signals indicator to display a magenta arrow (bear‑trend confirmation).
- Then watch the Bollinger Bands indicator’s red signal line to turn back below the 0.5 level (momentum reversal/sell signal).
- Enter a sell trade at the close of the confirming candle.
- Set a stop loss around 8‑12 pips above the recent swing high on M5 (or 12‑20 pips on M15 for more volatile pairs).
- Take profit: Option A: fixed target of 15‑20 pips.
- Option B: dynamic rule — close half at +10 pips, shift stop to breakeven, then aim for +20‑25 pips or exit when the red line turns back above 0.5 or an aqua Bykov arrow appears.
Advantages
- Combines volatility/momentum reversal (via Bollinger Bands indicator) with trend confirmation (via Bykov Trend Signals), improving trade quality.
- Simple visual cues and clear rules make it accessible for scalping, where quick decisions matter.
- Suitable for major currency pairs with tight spreads and high liquidity, which is ideal for scalpers.
- The dynamic profit‑taking rule allows both immediate capture and extended gain potential, depending on how the trade develops.
Drawbacks
- Frequent signals may lead to overtrading if discipline is lacking and setups are taken without full confirmation.
- Stop losses are tight by nature of scalping, which means slippage or spread spikes can adversely impact performance.
- Rapid execution is required — delays in execution or poor broker conditions can turn a valid setup into a loss quickly.
- Because of its quick nature, it requires full focus during the session — not suitable for “set and forget” trading or distracted screens.
Case Study 1 – EURUSD (M5 Chart)
During the London session, EURUSD showed an aqua arrow from the Bykov Trend Signals indicator confirming an uptrend.
Shortly after, the Bollinger Bands indicator’s red signal line crossed back above the 0.5 level.
A buy trade was entered at 1.1052 with a stop loss placed at 1.1040 (12 pips) and a take profit target set at +20 pips.
Within about 25 minutes, the pair moved to 1.1072, achieving the target.
The dynamic rule would have allowed moving stop to breakeven when +10 pips were reached and letting the rest run to +20 pips.
Case Study 2 – AUDUSD (M15 Chart)
In the New York session, AUDUSD triggered a magenta arrow from Bykov, indicating a bearish trend.
The Bollinger Bands red signal line then turned below 0.5, signalling a sell entry.
A short trade was placed at 0.6784 with a stop loss at 0.6796 (12 pips) and a target of +20‑25 pips via a dynamic take‑profit rule.
The pair declined to 0.6764 in about 30 minutes, realising +20 pips before consolidation set in.
Strategy Tips
- Only take trades when both indicator signals align (trend arrow + signal line reversal) — skip any one‑legged setups.
- Trade during high‑liquidity periods (London and New York sessions) to increase the probability of momentum follow‑through.
- Use major currency pairs with low spreads for scalping to reduce cost and slippage (e.g., EURUSD, USDJPY, AUDUSD, GBPUSD).
- Avoid exotic pairs unless you’re experienced with spread behaviour under scalping conditions.
- Consider reducing lot size or opting out during times of low volume (e.g., late U.S. or Sydney sessions) since false signals increase in quiet markets.
- Review performance regularly, track win/loss ratio, average pip gain, and adjust your dynamic take‑profit rule if needed based on pair behaviour.
This Bollinger Bands in Separate Window + Bykov Trend Signals MT4 scalping strategy gives traders a clear and disciplined way to enter and exit quick intraday trades.
With defined rules and a dynamic take‑profit option, it suits traders who are active at the screen and favours probability‑matched setups over guesswork.
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Download the “bollinger-bands-bb-separate-window.ex4” MT4 indicator
Adjustable Parameters & Settings
BB period, deviation, colors, width, style.
Feel free to explore the indicator’s different parameters and settings to create your own personalized indicator setup.
More Info About This Indicator
Supported currency pairs: Any
Trading Platform: Metatrader 4 (MT4)
Time Frames: M1, M5, M15, M30, H1, H4, D1, W1
Indicator Type: Bollinger Bands
