The Sigma Bands forex Metatrader 4 indicator is an advanced Bollinger Bands indicator with a lot of options to choose from.
This indicator has the ability to plot Bollinger bands based on the following types of moving average:
- Simple moving average
- Exponential moving average
- Smoothed moving average
- Linear-weighted moving average
In up trending markets, the Sigma Bands will point upwards and traders look to open a buy position near the lower support Signam bands.
Vice versa, in down trading markets, the Sigma Bands will point downwards and traders look to open a sell position near the upper Sigma resistance bands.
This is a good indicator for all kind of trading styles.
Free Download
Download the “Sigma_Bands.mq4” MT4 indicator
Indicator Chart (AUD/USD H4)
The AUD/USD H4 chart below displays the Sigma Bands forex indicator in action.
Basic Trading Signals
The Sigma Bands indicator can be traded as follows:
Buy Trade: In an uptrend, look to buy near the lower bands (support)
Sell Trade: In a downtrend, look to sell near the upper bands (resistance)
Trade exit: For long trades, look to take profits near the upper Sigma Bands (resistance)
For short trades, look to take profits near the lower Sigma Bands (support)
Sigma Bands AMKA Forex Scalping Strategy MT4
This MT4 scalping strategy combines trend direction from the Sigma Bands Metatrader 4 Forex Indicator with precise entry signals from the AMKA Signals Metatrader 4 Forex Indicator.
Sigma Bands helps you identify the current market bias by observing whether the bands are rising or falling.
AMKA Signals provides clear dot signals for entry timing.
Together they give scalpers a reliable way to enter and exit short-term trades with a rule-based approach.
The concept behind this strategy is to only take trades in the direction of the dominant short-term trend.
Rising Sigma Bands indicate bullish pressure and favor buy scalps. Falling Sigma Bands indicate bearish pressure and favor sell scalps.
The AMKA Signals dot adds confirmation so that you do not enter against the trend.
This keeps entries tight and focused on momentum that can produce quick gains.
This strategy is best used on the M1 and M5 timeframes.
It is suitable for both beginners and experienced scalpers because the rules are simple and the signals are easy to interpret.
Because scalping demands fast decision making, this strategy is designed for active traders who can watch charts and manage trades in real time.
Buy Entry Rules
- Apply the Sigma Bands MT4 indicator on the chart and observe the band direction.
- Ensure that the Sigma Bands are clearly rising. This shows bullish trend pressure.
- Wait for a red dot from the AMKA Signals indicator to appear. Red dot indicates buy potential.
- Enter the buy trade immediately when the red dot appears in a rising Sigma Bands environment.
- Place the stop loss below the recent swing low or the lower band support.
- Set take profit between 8 and 15 pips, adjusting for volatility of the currency pair.
Sell Entry Rules
- Check that the Sigma Bands are falling. A downward slope signals bearish pressure.
- Wait for a blue dot from the AMKA Signals indicator as confirmation to sell.
- Open a sell trade immediately when the blue dot occurs in the falling Sigma Bands environment.
- Place a stop loss above the recent swing high or upper band resistance.
- Take profit should be set between 8 and 15 pips to lock in quick scalping gains.
Advantages
- Combines trend direction and entry confirmation for high probability trades.
- Clear and easy entry signals reduce confusion during live trading.
- Works on low timeframes where scalping is most effective.
- Helps traders avoid entering against short-term trend pressure.
- Suitable for both novice and experienced scalpers with discipline.
Drawbacks
- Scalping requires constant attention to the charts and quick execution.
- Overtrading can happen without strict trade filters.
Case Study 1
On AUDUSD M1 during the London session, the Sigma Bands were clearly rising and price action showed bullish momentum.
A red dot from the AMKA Signals indicator appeared just as the price tested the lower band briefly.
A buy trade was opened according to the rules.
The pair moved upward with strong momentum, reaching the 12 pip take profit before any reversal signs.
The rising Sigma Bands trend reading helped ensure the trade aligned with short-term bias.
Case Study 2
On GBPUSD M5 in the early New York session, Sigma Bands were falling and the price remained below the middle band.
A blue dot from the AMKA Signals indicator appeared after a minor pullback toward the middle band.
A sell trade was entered immediately.
Price continued to drop, hitting a 10 pip take profit target.
The combination of falling Sigma Bands and a blue dot signal kept the entry precise and well aligned with the momentum.
Strategy Tips
- Only trade when the Sigma Bands show a clear slope and direction, as flat bands usually indicate weak momentum.
- Wait for the AMKA Signals dot to appear after a small pullback rather than during sharp spikes.
- Trade during high liquidity periods such as the London and New York sessions for smoother price movement.
- Keep position size small and consistent to handle the fast pace of scalping safely.
- Close trades manually if price stalls near the entry for too long, as momentum scalps need quick follow-through.
- Avoid entering multiple trades in the same direction without a new signal and fresh market structure.
- Review losing trades to check if Sigma Bands were losing direction before entry.
Download Now
Download the “Sigma_Bands.mq4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern
Customization options: Variable (MA Period, Bars for count, Type MA for Bands, Applied price MA, MA color) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: Bollinger Bands
