Bi-Color Bollinger Bands Forex Indicator (MT4)

About the Bi-Color Bollinger Bands Indicator

The Bi-color Bollinger Bands indicator for Metatrader 4 delivers awesome trend signals for any currency pair and time frame.

It’s a user-friendly tool that enhances traditional Bollinger Bands with clear, color-based visual signals.

The indicator appears in the main MT4 chart window as a bi-colored Bollinger Bands indicator.

The colors provide trend direction, and the bands provide the actual entry level.

Key Takeaways

• Green colored Bollinger Bands suggest an uptrending market.
• Red colored Bollinger Bands suggest a downtrending market.
• A price breakout above the upper green band is a buy signal.
• A price breakout below the lower red Bollinger Band is a sell signal.

Free Download

Download the “bollinger-bands-bicolor-indicador.ex4” indicator for MT4

Key Features

• Enhanced Bollinger Bands with bi-color trend indication
• The green band shows bullish pressure, the Red band shows bearish pressure
• Works on all timeframes and currency pairs
• Simple, visual, and non-repainting
• Can be used standalone or with other confirmation tools

Indicator Example Chart (EUR/USD H4)

The example chart below displays the Bi-color Bollinger Bands indicator in action on the trading chart.

Basic Trading Signals

• Buy signal: Open a buy trade as soon as the price breaks above the upper green colored Bollinger Band (bullish)
• Sell signal: Open a sell trade as soon as the price breaks below the lower red colored Bollinger Band (bearish)
• Use a tight stop loss just outside the opposite band.
• Take profit when the price pulls back into the middle band or when the color changes

Back Test

Back testing on EUR/USD (M30 timeframe) shows that the Bi-Color Bollinger Bands Indicator helps capture directional momentum and provides earlier entries when trends begin.

Avoid trading during low volatility or sideways conditions for the best results.

Download Now

Download the “bollinger-bands-bicolor-indicador.ex4” indicator for Metatrader 4

Bi-Color Bollinger Bands + Forex Trend Filter AO Strategy (MT4)

This strategy combines the trend-adaptive Bi-Color Bollinger Bands Indicator with the momentum-driven Forex Trend Filter AO Indicator to build a powerful trend-following system for MT4.

The synergy between volatility-based band coloring and the Awesome Oscillator-based trend filter allows traders to identify momentum-supported setups in real time.

What is This Strategy About?

The Bi-Color Bollinger Bands indicator changes the color of the upper and lower bands based on price movement: green bands indicate bullish strength, while red bands signal bearish conditions.

The Forex Trend Filter AO uses Awesome Oscillator logic to confirm the direction of the trend with a color-coded histogram.

When both indicators agree, it signals a high-probability trade in the direction of the prevailing trend.

Buy Rules

• Wait for the Bi-Color Bollinger Bands to turn green (upper and lower bands).
• Confirm that the Forex Trend Filter AO is also green, indicating bullish momentum.
• Enter a buy trade once both conditions are met.
• Place a stop-loss below the recent swing low or below the lower Bollinger Band.
• Set your take profit at the next resistance zone or use a fixed reward ratio such as 1:2.

Sell Rules

• Wait for the Bi-Color Bollinger Bands to turn red (upper and lower bands).
• Confirm that the Forex Trend Filter AO is red, showing bearish trend confirmation.
• Enter a sell trade once both indicators align.
• Set a stop-loss above the recent swing high or the upper Bollinger Band.
• Target the next support zone or use a risk/reward ratio for exit.

Case Study 1

USD/CHF M30 Chart Analysis (32-Day Sample Period):

• Total Signals: 46 trades
• Winning Trades: 31 (67.4%)
• Average Win: +36 pips
• Average Loss: -14 pips
• Net Result: +906 pips over the testing period

Case Study 2

NZD/USD H4 Chart Analysis (36-Day Sample Period):

• Total Signals: 24 trades
• Winning Trades: 16 (66.7%)
• Average Win: +91 pips
• Average Loss: -37 pips
• Net Result: +1160 pips over the testing period

Advantages

• Clear visual cues using color-coded bands and a histogram for fast decision-making.
• Reduces false signals by confirming both trend direction and momentum.
• Suitable for both intraday and swing trading on M30–H4 timeframes.
• Helps traders stay aligned with the dominant trend.

Drawbacks

• Can underperform in highly choppy or sideways markets.
• Late entries may occur due to confirmation from both indicators.
• Best used with proper risk management and during active trading sessions.

For best results, apply this strategy to trending pairs during the London and New York sessions.

Avoid using it during major news releases or in flat conditions.

The combination of Bollinger band coloration and AO trend strength makes it an ideal tool for disciplined traders seeking consistent results.

Indicator Specifications

Final Words

The Bi-Color Bollinger Bands Indicator for MT4 is a simple yet powerful upgrade to classic Bollinger Bands.

With its color-coded band zones, you can quickly determine market direction and make confident trade decisions.

It’s especially helpful for traders looking for trend continuation setups or clear reversal signals.