The Bollinger Bands histogram Metatrader 4 indicator is a simple to use buy/sell Forex indicator based on the popular Bollinger Bands technical indicator.
It’s transformed into a dual colored buy/sell BB trend histogram indicator that appears below the main trade window.
Interpret the Bollinger Bands dual colored buy/sell histogram as follows:
- A blue histogram Bollinger Bands bar represents a bullish signal.
- A red histogram Bollinger Bands bar represents a bearish signal.
I prefer to set the default 20 Bollinger Band period to value 50.
By doing so, it will eliminate more false whipsaw signals.
Bollinger Band signals can work on their own or can be used in conjunction with price action methods.
Use it for scalping, day trading, and swing trading.
Feel free to experiment with the different indicator’s inputs settings to suit your needs and preferences.
Free Download
Download the “iBands_Advanced_Histo_v1.0.ex4” MT4 indicator
Indicator Chart (AUD/JPY H4)
The AUD/JPY 4-Hour chart below displays the Bollinger Bands Histogram Metatrader 4 Forex Signals indicator in action.
Basic Trading Signals
Signals from the Bollinger Bands Histogram MT4 indicator are easy to interpret and goes as follows:
Buy Signal: Open a buy trade when the Bollinger Bands Histogram indicator changes its colored bars from red to blue.
Place a stop loss below support or use your own preferred SL method.
Take profit at an opposite sell signal or at a fixed profit target.
Sell Signal: Open a sell trade when the Bollinger Bands Histogram indicator changes its colored bars from blue to red.
Place a stop loss above resistance or use your own preferred SL method.
Take profit at an opposite buy signal or at a fixed profit target.
Bollinger Bands Histogram + Best Scalping Indicator MT4 Strategy
This MT4 scalping strategy combines the trend direction from the Bollinger Bands Buy/Sell Histogram Signals and the precise entry arrows from the Best Forex Scalping Indicator.
The histogram shows the underlying trend strength using color shifts. A blue histogram signals a bullish trend, while a red histogram signals a bearish one.
The scalping indicator then gives exact entry triggers through arrows. A blue arrow gives a buy signal, and a red arrow signals a sell.
By combining a trend filter with a direct entry tool, this strategy focuses only on trades where trend, momentum, and entry timing line up together.
This helps avoid low-quality trades that often appear on lower timeframes.
The method works well on M1 and M5 charts and is ideal for traders who enjoy fast-paced scalping with clear rules.
Buy Entry Rules
- The Bollinger Bands histogram must be blue to confirm a bullish trend.
- A blue arrow from the scalping indicator must appear.
- Enter a buy trade when both signals match.
- Place a stop loss under the recent swing low.
- Take profit between 6–12 pips on M1 or 12–20 pips on M5.
Sell Entry Rules
- The Bollinger Bands histogram must be red, showing a bearish trend.
- A red arrow from the scalping indicator must appear.
- Enter the sell trade when both signals align.
- Stop loss above the recent swing high.
- Take profit between 6–12 pips on M1 or 12–20 pips on M5.
Advantages
- Uses a trend filter plus an entry trigger for improved accuracy.
- Clear visual structure, easy to follow.
- Compatible with very fast timeframes.
- Well-suited for active market sessions with good volatility.
- Works on most major currency pairs.
Drawbacks
- Signals can flip quickly in choppy markets.
- Arrows may appear slightly late after volatility spikes.
- Spreads can affect performance with small profit targets.
Example Case Study 1: EUR/USD on M1
During the London open, EUR/USD began forming a small bullish push. The Bollinger Bands histogram switched to blue, showing a new upward trend.
A few candles later, the scalping indicator printed a blue arrow.
The trade was opened with a stop loss below the recent small pullback.
Price continued upward quickly and hit the 10-pip take profit in under ten minutes.
The strong alignment between trend and arrow made this scalp clean and straightforward.
Example Case Study 2: GBP/JPY on M5
Later in the New York session, GBP/JPY reversed from a high and started trending downward.
The Bollinger histogram turned red, confirming increasing selling pressure.
Shortly after, the scalping indicator produced a red arrow.
A sell trade was taken and protected with a stop above the previous swing.
Over the next few candles, GBP/JPY dropped steadily and hit the 18-pip target without retracing.
Strategy Tips
- Use very liquid pairs such as EUR/USD, GBP/JPY, USD/JPY, or XAU/USD for better volatility.
- Do not take trades when the histogram flips color every few bars.
- Best results occur during London or early New York trading hours.
- Test different stop and target distances per pair to find what works best.
- Keep charts clean; avoid extra indicators that may delay decisions.
- Stay patient and only trade when the histogram color and arrow match.
Download Now
Download the “iBands_Advanced_Histo_v1.0.ex4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (period indicator, shift indicator, deviation indicator, applied price) Width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, Daily, Weekly, Monthly
Type: bands
