BBands For RSI Signal Indicator (MT4)

About the BBands for RSI Signal Indicator

The BBands For RSI Signal indicator for Metatrader 4 is a buy & sell technical tool mainly based on RSI and Bollinger Bands.

The indicator appears in a separate trading window in the form of blue and red colored signal arrows.

The indicator works well in both trending and range-bound markets.

Just load it on the chart, and the indicator will start analyzing the chart for you on autopilot.

Key Takeaways

• A buy signal occurs when the blue BBands for the RSI Signal arrow get printed on the chart.
• A sell signal occurs when the red BBands for the RSI Signal arrow get printed on the chart.
• Low-risk stop losses can be used.
• Simple to use technical indicator.

For scalping currency pairs, the BBands for the RSI Signal indicator tend to work the best during the London and U.S. trading sessions.

Free Download

Download the “bbands-for-rsi.mq4” indicator for MT4

Key Features of the BBands for RSI Signal Indicator

• Combines the strength of Bollinger Bands and RSI
• Prints Blue arrows for buy signals and Red arrows for sell signals
• Non-repainting entries for higher trading confidence
• Works on all timeframes and currency pairs
• Clean, minimal chart display without clutter

How the Indicator Works

When RSI hits oversold with a lower Bollinger Band breach, it plots a Blue arrow signaling a buy opportunity.
Conversely, if RSI reaches overbought and price touches the upper band, a Red arrow indicates a potential sell.

Indicator Example Chart (EUR/USD H1)

How to Trade Using This Indicator

• Go long as soon as the indicator draws the blue arrow on the chart. Utilize a small stop loss just below support.
• Go short as soon as the indicator draws the red arrow on the chart. Utilize a small stop loss just above resistance.
• 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 “bbands-for-rsi.mq4” indicator for Metatrader 4

BBands for RSI Signal + Hull Moving Average Signal Arrows Strategy for MT4

This strategy combines the overbought/oversold momentum readings of the BBands for RSI Signal Indicator with the dynamic trend-following arrows of the Hull Moving Average Signal Arrows Indicator.

By using the Bollinger Bands applied to RSI to detect momentum extremes and the Hull MA to confirm trend direction, this strategy offers timely entries with enhanced trend filtering—ideal for traders on the M15 to H1 timeframes.

What Is This Strategy About?

The BBands for RSI Signal Indicator applies Bollinger Bands to the RSI to generate buy and sell signals when momentum enters extreme zones.

It helps identify potential reversal or continuation points based on volatility.

The Hull Moving Average Signal Arrows Indicator simplifies trend analysis by generating buy/sell arrows when the Hull Moving Average changes direction.

By combining these tools, traders can filter out false momentum moves and stay aligned with the prevailing market trend.

How the Indicators Work Together

1. BBands for RSI Signal Indicator

This indicator detects when the RSI breaks out of the Bollinger Bands applied to it.

Signals appear when RSI is outside the bands, suggesting potential exhaustion or strong trend momentum.

It helps to spot early entries and exit points based on momentum extremes.

2. Hull Moving Average Signal Arrows Indicator

Generates arrows based on the direction of the Hull Moving Average, which reacts faster than standard moving averages but retains smoothness.

The arrows visually confirm trend shifts and help with precise timing.

Buy Rules

• Wait for a Buy Signal from the BBands for RSI Signal Indicator.
• Confirm the appearance of a Buy Arrow from the Hull Moving Average Signal Arrows Indicator.
• Enter long at the close of the candle with both confirmations.
• Set stop loss just below the recent swing low or a fixed pip buffer beneath the entry.
• Take profit at the next resistance level or use a 1:2 risk-reward ratio.

Sell Rules

• Wait for a Sell Signal from the BBands for RSI Signal Indicator.
• Confirm a Sell Arrow from the Hull Moving Average Signal Arrows Indicator.
• Enter short at the close of the candle, showing both confirmations.
• Place a stop loss above the recent swing high or a predefined pip buffer above the entry.
• Set a take profit at the next support level or use a 1:2 risk-reward ratio.

Case Study Example

EUR/JPY M15 Chart Analysis (28-Day Sample Period):

• Total Signals: 38 trades
• Winning Trades: 26 (68.4%)
• Average Win: +24 pips
• Average Loss: -10 pips
• Net Result: +504 pips over the testing period

Advantages of the Strategy

• Double Confirmation: Reduces false signals by requiring both momentum exhaustion and trend alignment.
• Visually Intuitive: Arrows and signals are easy to read and execute in real time.
• Adaptable: Works across multiple Forex pairs and timeframes, especially M15 to H1.
• Momentum and Trend Filter: Ensures traders aren’t counter-trend trading blindly.

Drawbacks and Considerations

• In choppy or low-volatility markets, RSI signals may appear frequently and confuse.
• Lag from the Hull Moving Average may cause slightly late entries in fast markets.
• Discipline is required to wait for full confirmation from both indicators.

Conclusion

The combination of the BBands for RSI Signal and Hull Moving Average Signal Arrows provides a reliable and visually clean MT4 strategy.

It helps traders identify high-probability reversal or trend continuation setups, leveraging both volatility-based momentum analysis and fast trend confirmation.

Indicator Specifications

Final Words

The BBands for RSI Signal Indicator is a simple yet powerful trading tool that combines momentum and volatility in one package.

Whether you’re a scalper or a swing trader, this indicator fits right into your system.

Download it for free today and start improving your trading accuracy.