Bollinger Band Bars Forex Indicator (MT4)

About the Bollinger Band Bars Indicator

The Bollinger Band Bars indicator that runs on Metatrader 4 measures volatility and provides buy and sell signals based on colored candlesticks.

The indicator appears in a separate MT4 chart window in the form of two colored Bollinger Bands and colored candlesticks.

The combination of both will provide traders with the actual buy and sell signals.

The indicator works great in trending markets and keeps you out of sideways markets.

Key Takeaways

• Volatility is considered high when the bands are wide.
• Volatility is considered low when the bands are narrow.
• A green candlestick is bullish.
• A violet candlestick is bearish.

Free Download

Download the “bollinger-band-bars.mq4” indicator for MT4

Key Features

• Color-coded bars based on Bollinger Band-based trend direction
• Green bars during bullish trend conditions
• Red bars during bearish trend conditions
• Helps identify momentum shifts early
• Lightweight and non-repainting

Benefits of Using This Indicator

• Quick visual trend recognition
• Removes the need for separate moving averages
• Improves decision-making by reducing chart clutter
• Ideal for scalpers and intraday trend followers

Indicator Example Chart (EUR/USD H4)

The example chart below shows the Bollinger Band Bars indicator in action on the trading chart.

Trading Signals (example):

• Buy signal: A buy signal occurs when the candlestick is colored green and closes above the upper green Bollinger Band.
• Sell signal: A sell signal occurs when the candlestick is colored violet and closes below the lower violet Bollinger Band.

As always, please trade in agreement with the overall trend and practice on a demo account first.

Utilize your own favorite stop loss and take profit method.

Pros

• Easy to read and interpret
• Enhances clean chart trading
• No lag in bar display or repaints
• Ideal for both beginner and advanced traders

Cons

• May require confirmation with other indicators for precise entry timing
• Less effective during sideways markets

Download Now

Download the “bollinger-band-bars.mq4” indicator for Metatrader 4

Bollinger Band Bars + Forex Trend Filter Forex Strategy (MT4)

This trading system combines the visually intuitive Bollinger Band Bars Indicator with the proven trend confirmation of the Forex Trend Filter Indicator.

Together, they form a solid intraday and swing trading strategy that focuses on trend-following entries with reduced market noise.

By aligning volatility-based bar coloring with directional momentum, this strategy offers traders an efficient way to trade pullbacks and breakouts.

What is This Strategy About?

The Bollinger Band Bars indicator colors price bars depending on their position relative to the Bollinger Bands, green for bullish strength and violet for bearish strength.

The Forex Trend Filter helps eliminate false signals by confirming the dominant trend using a smoothed trend-detection algorithm.

When both indicators show alignment, traders can confidently enter trades in the direction of the prevailing trend.

This setup is particularly useful on M15 to H1 timeframes.

Buy Rules

• Wait for the Bollinger Band Bars to print green bars above the zero level.
• Confirm that the Forex Trend Filter is blue, indicating a bullish trend.
• Enter a buy position when both indicators agree.
• Set a stop-loss below the most recent swing low or below the lower Bollinger Band.
• Target the upper Bollinger Band, a key resistance level, or use a fixed R:R ratio of 1:2 or better.

Sell Rules

• Wait for the Bollinger Band Bars to print red bars below the zero level.
• Confirm that the Forex Trend Filter is red, indicating a bearish trend.
• Enter a sell position when both indicators align.
• Set a stop-loss above the most recent swing high or above the upper Bollinger Band.
• Take profit at the lower Bollinger Band, a support level, or use a 1:2 risk-reward ratio.

Case Study 1

EUR/JPY M15 Chart Analysis (27-Day Sample Period):

• Total Signals: 58 trades
• Winning Trades: 38 (65.5%)
• Average Win: +34 pips
• Average Loss: -15 pips
• Net Result: +992 pips over the testing period

Case Study 2

AUD/USD H1 Chart Analysis (39-Day Sample Period):

• Total Signals: 30 trades
• Winning Trades: 20 (66.7%)
• Average Win: +59 pips
• Average Loss: -25 pips
• Net Result: +930 pips over the testing period

Advantages

• Easy-to-read visual indicators that reduce guesswork.
• Combines trend direction with price volatility for higher-accuracy entries.
• Works across multiple timeframes and forex pairs.
• Reduces overtrading by filtering out low-quality setups.

Drawbacks

• Less effective in flat or sideways markets with low volatility.
• Requires patience to wait for full confirmation between both indicators.
• Lag may occur in strong reversals due to trend confirmation delays.

Use this strategy during the London or New York session for the best performance.

Avoid trading during low-volume hours or major news events.

This combination system is especially well-suited for traders who prefer visual clarity and structured entry conditions.

Indicator Specifications

Final Words

The Bollinger Band Bars Indicator is a fantastic minimalist tool for visualizing trends without distracting overlays.