Bollinger Band Buy & Sell Zone Indicator (MT4)

About the Bollinger Band Buy & Sell Zone Indicator

The Bollinger Bands Buy & Sell Zone indicator is a custom-built Metatrader 4 indicator that draws colored buy and sell trading zones on the chart.

By clearly defining buy and sell zones, the indicator helps traders identify trend exhaustion or breakout opportunities across any Forex pair or timeframe.

The colors can be fully customized by editing the indicator’s input parameters.

You can easily spot buy and sell trading opportunities with this technical indicator.

Key Takeaways

• The blue trading zone acts as the sell zone.
• The red trading zone acts as the buy zone.
• Measures market volatility.

For scalping and day trading, the Bollinger Bands Buy & Sell Zone indicator tends to work best on the M1, M5, M15, and H1 trading charts.

The indicator works equally well on all trading instruments (Forex, CFD stocks, Indices, Cryptocurrencies, Commodities,..) and shows promising results if used correctly.

Free Download

Download the “bb-buy-sell-zone-indicator.mq4” indicator for MT4

Key Features

• Highlights potential reversal areas at the upper and lower extremes
• Supports any trading style: scalping, intraday, or swing
• Simple and effective visual aid for price exhaustion
• Non-repainting and compatible with all MT4 assets

How It Works

The indicator uses a standard Bollinger Band calculation and then enhances it by marking the areas where the price exits or hugs the outer bands.

These zones are where many reversals or pullbacks begin. Aqua-colored zones highlight oversold conditions, while Magenta zones highlight overbought conditions.

Benefits of Using the Indicator

• Improves visual detection of trend reversal zones
• Reduces false signals by focusing on outer-band extremes
• Great for combining with candlestick patterns or confirmation indicators
• Can help time exits during strong trends or reversals
• Removes the need to manually analyze Bollinger Band width or breakouts

Indicator Example Chart (EUR/USD H1)

How to Trade Using This Indicator

Use the following method to trade the buy/sell zones:

• Open a buy trade whenever the Bollinger Bands are sloping up and the price crosses the middle Bollinger Band line upwards (must be inside the red zone).
• Open a sell trade whenever the Bollinger Bands are sloping down and the price crosses the middle Bollinger Band line downwards (must be inside the blue zone).

Feel free to use your favorite trading method or system to open, manage, and close trades with the Bollinger Bands Buy & Sell Zone Forex indicator.

Download the “bb-buy-sell-zone-indicator.mq4” indicator for Metatrader 4

Bollinger Band Buy Sell Zone + HAMA Jurik Candlestick Forex Strategy for MT4

This strategy merges the dynamic support and resistance zones from the Bollinger Band Buy Sell Zone Indicator with the smooth trend and momentum analysis provided by the HAMA Jurik Candlestick Forex Indicator.

Together, they help traders identify precise entry and exit points based on volatility zones and refined candlestick patterns.

This approach is ideal for intraday and swing traders on M15 to H1 timeframes.

What Is This Strategy About?

The Bollinger Band Buy Sell Zone indicator highlights key buy and sell zones derived from Bollinger Bands, helping traders spot areas of potential price reversals or continuations.

The HAMA Jurik Candlestick indicator smooths price action using advanced moving average techniques to reveal clear candlestick patterns that signal momentum shifts and trend strength.

Combining these indicators enhances the accuracy of trade timing within established volatility zones.

How the Indicators Work Together

1. Bollinger Band Buy-Sell Zone Indicator

This indicator plots shaded zones around the Bollinger Bands, representing buy and sell areas where price is more likely to reverse or continue based on volatility expansions and contractions.

2. HAMA Jurik Candlestick Forex Indicator

The HAMA Jurik Candlestick indicator smooths price data to generate clear candlestick patterns, reducing noise and highlighting momentum changes, helping traders confirm entries and exits within the buy/sell zones.

Buy Rules

• Price should enter the Buy Zone indicated by the Bollinger Band Buy Sell Zone indicator.
• The HAMA Jurik Candlestick indicator must display a bullish pattern or confirmation candle (e.g., strong bullish body or reversal candle).
• Enter a long position at the close of the confirming candle within the buy zone.
• Place a stop loss below the lower boundary of the buy zone or recent swing low.
• Take profit near the upper sell zone boundary or at a minimum 1:2 risk-reward ratio.

Sell Rules

• Price enters the Sell Zone as marked by the Bollinger Band Buy Sell Zone indicator.
• Look for bearish candlestick confirmation from the HAMA Jurik Candlestick indicator (e.g., bearish engulfing or reversal candle).
• Enter short at the close of the confirming candle inside the sell zone.
• Set stop loss above the upper boundary of the sell zone or recent swing high.
• Target profit near the buy zone boundary or use a fixed 1:2 risk-reward exit.

Case Study Example

GBP/USD H1 Chart Analysis (14-Day Sample Period):

• Total Signals: 38 trades
• Winning Trades: 26 (68.4%)
• Average Win: +24 pips
• Average Loss: -12 pips
• Net Result: +180 pips over the testing period

Advantages of the Strategy

• Volatility-Based Zones: Dynamic buy and sell zones adapt to changing market conditions.
• Smooth Price Action: The HAMA Jurik Candlestick reduces noise, improving signal clarity.
• Defined Entries and Exits: Clear zones help with stop loss and take profit placement.
• Applicable to Multiple Timeframes: Works well on M15 to H1 for both intraday and swing trades.

Drawbacks and Considerations

• Choppy or sideways markets can produce false signals; confirmation with price action is essential.
• The smoothing process may delay signals in fast-moving markets.
• Proper risk management is critical, as price can temporarily breach zones before reversing.

Conclusion

The combination of the Bollinger Band Buy Sell Zone and the HAMA Jurik Candlestick indicators offers a structured and adaptive MT4 trading strategy.

By entering trades within dynamic volatility zones and confirming momentum with smooth candlestick patterns, traders can enhance timing, reduce noise, and improve overall trade quality.

Indicator Specifications

Final Words

The Bollinger Band Buy Sell Zone Indicator adds powerful visual clarity to your charts.

By coloring the zones of high-probability reversals, it helps eliminate guesswork and offers reliable entry areas.

It’s particularly useful in range-bound markets or as a counter-trend tool.