BB Stops Forex Signals Indicator (MT4)

About the BB Stops Forex Signals Indicator

The BB Stops Forex indicator for MT4 is a simplified version of the Bollinger Bands indicator and delivers solid buy and sell trading signals.

The indicator appears in the form of alternating signal lines on the activity chart.

BB Stops is always active in the market, either indicating a buy or sell position.

It operates as a typical stop-and-reverse trading indicator, making it suitable for various trading styles, including scalping, day trading, and swing trading.

Key Takeaways

• A green BB Stops signal line represents a bullish market.
• A red BB Stops signal line represents a bearish market.
• It is always active in the market.
• Easy to trade with, even for absolute beginners.

For scalping currency pairs, the indicator tends to work the best during the London and U.S. trading sessions.

Free Download

Download the “bb-stops-new-format-v1-2.mq4” indicator for MT4

How It Works

The BB Stops indicator utilizes Bollinger Bands to determine market volatility and trend direction.

When the price is above the upper Bollinger Band, the indicator draws a green signal line, suggesting a bullish trend.

Conversely, when the price is below the lower Bollinger Band, the indicator draws a red signal line, indicating a bearish trend.

Traders can use these signals to enter trades in the direction of the prevailing trend, with the option to close and reverse positions when an opposite signal appears.

Benefits of Using the Indicator

• Provides clear and easy-to-interpret signals.
• Helps identify market trends and potential reversals.
• Suitable for various trading strategies and styles.
• Enhances trading decisions with minimal lag.
• Free to download and use.

Indicator Example Chart (EUR/USD Daily)

How to Trade Using This Indicator

To trade using the BB Stops Forex Signals Indicator:

• Open a buy trade as soon as the indicator starts drawing the green Bollinger Band signal line on the activity chart.
• Open a sell trade as soon as the indicator starts drawing the red Bollinger Band signal line on the activity chart.
• Close and reverse the position whenever an opposite trading signal arrives on the chart, or exit the open trade for a fixed profit target.

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Download the “bb-stops-new-format-v1-2.mq4” indicator for Metatrader 4

BB Stops Forex Signals + Harami Pattern Indicator Strategy for MT4

This strategy combines the volatility-based breakout signals from the BB Stops Forex Signals Indicator with the reliable candlestick reversal patterns detected by the Harami Pattern Indicator.

Together, they provide traders with clear entry and exit points by blending trend momentum with price action reversal signals, suitable for intraday and swing trading on M15 to H1 timeframes.

What Is This Strategy About?

The BB Stops Forex Signals indicator uses Bollinger Bands to identify breakout points and generates buy or sell signals when the price crosses key volatility thresholds.

The Harami Pattern Indicator scans for classic Harami candlestick patterns—known for indicating potential reversals in price action.

By combining breakout signals with reversal pattern confirmations, traders can better time their entries and exits while managing risk effectively.

How the Indicators Work Together

1. BB Stops Forex Signals Indicator

This indicator highlights buy and sell signals when the price breaks above or below the Bollinger Bands stops, capturing momentum shifts and breakout opportunities.

2. Harami Pattern Indicator

The Harami Pattern Indicator identifies two-candle reversal formations that often precede a change in trend direction, offering early warnings of potential market turning points.

Buy Rules

• Wait for a Buy Signal from the BB Stops Forex Signals indicator (price closing above the upper Bollinger Band stop).
• Confirm a bullish Harami candlestick pattern near the breakout or pullback area.
• Enter a long trade at the close of the confirming candle.
• Place a stop loss below the recent swing low or the lower Bollinger Band stop.
• Set take profit at resistance levels or maintain a minimum 1:2 risk-reward ratio.

Sell Rules

• Receive a Sell Signal from the BB Stops Forex Signals indicator (price closing below the lower Bollinger Band stop).
• Look for a bearish Harami pattern confirming potential reversal near the breakout or retest.
• Enter short at the close of the confirming candle.
• Place a stop loss above the recent swing high or upper Bollinger Band stop.
• Target support zones or use a trailing stop based on volatility.

Case Study Example

GBP/JPY M15 Chart Analysis (2-Week Sample Period):

• Total Signals: 40 trades
• Winning Trades: 28 (70%)
• Average Win: +22 pips
• Average Loss: -12 pips
• Net Result: +472 pips over the testing period

Advantages of the Strategy

• Combines Momentum and Price Action: Breakout signals filtered by candlestick reversal patterns reduce false entries.
• Clear Entry and Exit Points: Bollinger Band stops and Harami patterns provide objective trade levels.
• Alerts and Visuals: Both indicators provide easy-to-interpret signals for timely decisions.
• Works Across Timeframes: Effective on M15 to H1 for active trading.

Drawbacks and Considerations

• Whipsaws can occur during low volatility or sideways markets; patience is essential.
• Harami patterns sometimes fail—confirmation with volume or other indicators is recommended.
• Strict risk management is required to avoid losses during false breakouts.

Conclusion

The combined use of the BB Stops Forex Signals and Harami Pattern indicators offers a balanced and reliable MT4 trading strategy.

By trading momentum breakouts aligned with proven candlestick reversal patterns, traders can improve entry accuracy, reduce risk, and increase the potential for consistent profits.

Indicator Specifications

Final Words

The BB Stops Forex Signals Indicator offers a straightforward approach to identifying market trends and potential trade opportunities.

By providing clear buy and sell signals based on Bollinger Bands, it aids traders in making informed decisions.

Whether you’re a beginner or an experienced trader, this indicator can enhance your trading strategy.

Download the indicator now and start trading with confidence!