The BB Rainbow Forex indicator for Metatrader 4 draws the Bollinger Bands in the form of a rainbow and it can be used for trade entry.
This indicator is quite popular among Forex Traders and opens up in the main chart window.
The BB Rainbow indicator gives you trend direction and can be easily combined with technical oscillators to find the perfect trade entry signal.
Key Points
- Provides easy to follow trend direction.
- Works on the Bollinger Bands principle.
- Easy to use, even for beginners.
- Well worth adding to your indicator collection.
BB Rainbow can work together with any existing trading strategy or system as an additional trend confirmation indicator.
Free Download
Download the “BB Rainbow.mq4” MT4 indicator
Indicator Chart (EUR/USD H1)
The EUR/USD H1 chart below shows the BB Rainbow indicator in action.
Basic Trading Signals
Signals from the BB Rainbow Forex indicator for Metatrader 4 are easy to interpret and goes as follows:
BUY:
- A buy signal is given when the Bollinger bands are sloping up and price reaches the lower Bollinger Bands rainbow (buy entry).
- Place your stop loss below the lower Bollinger Bands rainbow.
- Choose your own take profit method, or aim for a risk-to-reward ratio of 1.5 or better.
SELL:
- A sell signal is given when the Bollinger bands are sloping down and price reaches the upper Bollinger Bands rainbow (sell entry).
- Place your stop loss above the upper Bollinger Bands rainbow.
- Choose your own take profit method, or aim for a risk-to-reward ratio of 1.5 or better.
Download Now
Download the “BB Rainbow.mq4” MT4 indicator
Adjustable Parameters & Settings
Bands period, bands shift, bands deviations, MA method, MA price, 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
