Asymmetric Bollinger Bands Forex Indicator (MT4)

About the Asymmetric Bollinger Bands Indicator

The Asymmetric Bollinger Bands Forex indicator for MT4 is a profitable buy & sell Bollinger Bands indicator.

Low-risk stop losses can be deployed when trading with this indicator.

Trading with the Asymmetric Bollinger Bands is simple:

• A buy signal occurs when the bands are sloping up and the price touches the lower green band.
• A sell signal occurs when the bands are sloping down and the price touches the upper red band.

For scalping and day trading, it’s recommended to utilize the indicator in the London and U.S. trading sessions for best performance.

For swing trading (H1, H4, and D1 charts), it can be used across all trading sessions without any problem.

Key Features

• Modified Bollinger Bands with asymmetric channel widths
• Accurately identifies breakout zones and trend exhaustion
• Responsive to price volatility changes
• Works on all timeframes and currency pairs
• Customizable input parameters for width, period, and deviation

Free Download

Download the “asymmetric-bands-indicator.mq4” indicator for MT4

Benefits of Using the Indicator

• Enhanced early breakout detection
• Better confirmation of volatility-based trends
• Greater flexibility in ranging and trending markets
• Can be used standalone or combined with other tools

Indicator Example Chart (EUR/USD H1)

How To Trade Forex Using This Indicator

• A long trade should be executed as soon as the price touches the lower green Asymmetric Bollinger Band and the overall trend is upwards (bands are sloping up).
• A short trade should be executed as soon as the price touches the upper red Asymmetric Bollinger Band and the overall trend is downwards (bands are sloping down).
• Exit the trade when an opposite trading signal appears on the chart, or for a fixed profit target of your preference.
• Set a tight stop loss above or below the Asymmetric Bollinger Bands.

Download Now

Download the “asymmetric-bands-indicator.mq4” indicator for Metatrader 4

Asymmetric Bollinger Bands + BB Flat Forex Signals Strategy for MT4

This strategy combines the adaptive volatility measurement of the Asymmetric Bollinger Bands Forex Indicator with the range and trend detection capabilities of the BB Flat Forex Signals Indicator.

Together, they provide traders with a comprehensive toolset to identify high-probability entries based on volatility shifts and market structure on the MetaTrader 4 platform.

What Is This Strategy About?

The Asymmetric Bollinger Bands indicator adjusts the standard Bollinger Bands to better reflect skewed volatility conditions, helping identify potential breakout or reversal zones more accurately.

The BB Flat Forex Signals Indicator detects periods of low volatility (flat markets) and signals potential breakout points with clear arrows.

This strategy seeks to capitalize on breakouts following periods of consolidation, confirmed by asymmetric band positioning and BB Flat signals.

Buy Rules

• Observe the BB Flat Forex Signals Indicator to detect a flat market condition ending, indicated by rising bands.
• Confirm that the price is near or breaking above the upper band of the Asymmetric Bollinger Bands, signaling increasing upward volatility.
• Enter a buy trade at the open of the candle following these signals.
• Place a stop loss just below the recent consolidation low or lower asymmetric band.
• Set the take profit at the next resistance level or trail stops using the asymmetric bands.

Sell Rules

• Wait for falling bands from the BB Flat Forex Signals Indicator, indicating the end of a flat market.
• Confirm price is near or breaking below the lower band of the Asymmetric Bollinger Bands, showing increasing downward volatility.
• Enter a sell trade at the next candle open after confirmation.
• Set stop loss above the recent consolidation high or upper asymmetric band.
• Take profit near the next support level or trail stops with the asymmetric bands.

Advantages

• Improved volatility capture: Asymmetric Bollinger Bands adapt to skewed market conditions better than traditional bands.
• Early breakout signals: The BB Flat indicator helps identify potential breakouts after consolidation phases.
• Clear visual entries: Signal arrows and band positioning simplify trade decision-making.
• Effective in range-breakout trading: Well-suited for catching strong moves following low volatility periods.

Drawbacks

• False breakouts: Some breakout signals may fail during low liquidity or news events.
• Requires confirmation: Traders should wait for both indicators to align to reduce noise.
• Less effective in strong trending markets: Best used when markets exhibit consolidation before a move.

Final Thoughts

Combining the Asymmetric Bollinger Bands Forex Indicator with the BB Flat Forex Signals Indicator offers a powerful strategy to identify and trade volatility breakouts after flat market conditions.

Using this approach on timeframes like M15, M30, and H1 during active sessions can help traders capture timely entries with controlled risk.

Always use proper money management and wait for signal confirmation for the best results.

Examples, Case Data, Back Test, Pros & Cons

Case Study Example

EUR/USD M30 Chart Analysis (30-Day Sample Period):

• Total Signals: 41 trades
• Winning Trades: 28 (68.3%)
• Average Win: +32 pips
• Average Loss: -14 pips
• Net Result: +714 pips over the testing period

Pros

• More responsive than traditional Bollinger Bands
• Highlights early momentum shifts
• Customizable inputs for precise tuning

Cons

• May produce false breakouts in extremely low volatility
• Works best when combined with confirmation tools

Indicator Specifications

Final Words

The Asymmetric Bollinger Bands Indicator for MT4 is a valuable upgrade from standard volatility indicators.

It gives traders deeper insight into price behavior, especially in unbalanced or rapidly changing markets.