About the BOLA Price Action Indicator
The BOLA Price Action Indicator for MT4 is a trading tool built entirely around price behavior.
It avoids complex calculations and focuses on how price moves, making it suitable for traders who prefer clean and direct market analysis.
The indicator is displayed in a separate MT4 chart window as colored signal bars.
These bars reflect short-term price action momentum and shift color as market pressure changes.
Green bars represent bullish conditions, while red bars indicate bearish conditions.
This visual approach helps traders react quickly without overanalyzing the chart.
Free Download
Download the “Price action.mq4” indicator for MT4
Key Features
- Pure price action-based signal logic.
- Displays colored signal bars in a separate chart window.
- Highlights short-term momentum shifts.
- Suitable for entries and exits.
Indicator Chart
The BOLA Price Action Indicator is shown in a lower chart window using colored signal bars.
The chart illustrates how green and red bars alternate as momentum changes.
These signals help traders identify when price pressure shifts from buyers to sellers or vice versa.
Guide to Trade with the BOLA Price Action Indicator
Buy Rules
- Wait for the BOLA bar to turn green in the indicator window.
- Confirm that price action supports upward momentum.
- Prefer signals that appear after a pullback or consolidation phase.
Sell Rules
- Wait for the BOLA bar to turn red in the indicator window.
- Confirm that price action supports downward momentum.
- Avoid entries when bars change color frequently in tight ranges.
Stop Loss
- Place the stop loss beyond the most recent swing high or swing low.
- Allow enough room for normal price fluctuation.
- Keep risk per trade consistent regardless of time frame.
Take Profit
- Scale out part of the position once price moves a fixed number of pips in your favor.
- Trail the take profit using recent candle closes in the trade direction.
- Exit the trade before the price reaches major session highs or lows.
BOLA + Non-Lag AMA Forex Scalping Strategy
This MT4 scalping strategy merges the fast, bar-based signals from the BOLA Price Action Indicator with trend confirmation via the Non-Lag AMA Indicator.
The idea is simple: only take bar signals that agree with the underlying trend line.
This helps filter false signals and improves hit rate for short intraday moves.
This method works best on low timeframes, such as M5 and M15, and on liquid pairs like EUR/USD, GBP/USD, and USD/JPY.
It’s beneficial for traders who prefer quick in-and-out trades without holding overnight.
Buy Entry Rules
- Wait for the BOLA bar to turn green (buy signal).
- Confirm that the Non-Lag AMA line is blue (indicating an uptrend).
- Enter long at the close of the bar that turned green (if the AMA line is already blue).
- Set your stop loss below the recent swing low, or use a fixed pip stop (for example, 10–15 pips depending on pair and volatility).
- Take profit at a resistance level or target a risk-reward of at least 1:1.5 (for example, 15 pips if stop is 10 pips) or trail stop once price moves in your favor.
Sell Entry Rules
- Wait for the BOLA bar to turn red (sell signal).
- Confirm that the Non-Lag AMA line is red (indicating a downtrend).
- Enter short at the close of the bar that turned red (if the AMA line is already red).
- Set your stop loss above the recent swing high, or use a fixed pip stop (for example, 10–15 pips).
- Take profit at a support level or aim for a risk-reward of at least 1:1.5, or trail your stop as the price moves in your favor.
Advantages
- Simple and fast signals: green/red bars are easy to read.
- Trend filter via the AMA line helps avoid fading strong moves.
- Suitable for scalping during active market hours.
- Works across multiple currency pairs.
- Flexible: you can use fixed targets or trailing stops depending on your style.
Drawbacks
- In ranging markets, signals may be whipsawed.
- Sometimes the bar may change color late, reducing reward potential.
- Requires good risk control — a few bad trades can hurt in scalping.
- Spread and slippage may eat into profits on very small targets.
Example Case Study 1
On EUR/USD (M5), at 10:15, a BOLA bar turned green.
At that moment, the Non-Lag AMA was already blue (confirming uptrend).
The trader entered a buy at 1.2050, placed SL at 1.2038 (12 pips) and target at 1.2068 (18 pips).
The price moved upward and hit the target within 20 minutes for +18 pips.
Example Case Study 2
On GBP/USD (M15), at 14:30, a BOLA bar switched red.
The Non-Lag AMA line had already flipped red.
A short entry was taken at 1.3950 with SL at 1.3965 (15 pips) and TP at 1.3928 (22 pips).
The pair dropped steadily, and the trade closed in profit after about 30 minutes.
Strategy Tips
- Open a buy position as soon as you see the first green BOLA bar and the AMA line is blue (confirming trend).
- Open a sell position as soon as you see the first red BOLA bar and the AMA line is red.
- Focus your trading during high liquidity hours (London and New York sessions) for stronger moves.
- Avoid trading right around major news releases, as volatility spikes may break the rules.
- Use a small trailing stop when the trade has moved in your favor by half your target to protect profit.
- Always backtest this strategy on several pairs and sessions to learn the behavior and refine your stop/target levels.
Download Now
Download the “Price action.mq4” indicator for Metatrader 4
FAQ
Does the BOLA Price Action indicator repaint past signals?
No, once a BOLA bar is printed, its signal remains fixed.
This allows traders to review past setups without confusion.
Which market conditions suit this indicator best?
The indicator performs well during active market phases.
Strong directional moves tend to produce the most reliable price action bars.
Can the indicator be combined with support and resistance levels?
Yes, many traders align BOLA signals with nearby price zones.
This helps improve timing and reduce low-quality entries.
Is the indicator suitable for higher time frame trading?
It can be used on higher time frames for smoother signals.
Higher charts often reduce noise and improve overall trade quality.
Summary
The BOLA Price Action Indicator for MT4 offers traders a straightforward way to read market momentum.
By focusing on price behavior, it removes unnecessary complexity from analysis.
Its color-based signal bars make it easy to spot shifts in buying and selling pressure.
The indicator integrates smoothly into both discretionary and rule-based trading approaches.
While no tool guarantees success, BOLA provides a solid framework for price action trading.
With disciplined execution and risk management, it can enhance timing and trading confidence.
