The popular Bollinger Bands MT4 indicator was originally developed by John Bollinger and is used to measure the volatility of any market instrument, including currency pairs.
The indicator consists of 3 bands: the middle band and two outer bands.
Bollinger bands show us volatility in the market. When the bands are close together, volatility is low.
On the contrary, when the bands are wide, it simply means high volatility.
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Download the “Bands.mq4” MT4 indicator
Indicator Chart (EUR/USD H1)
The EUR/USD H1 Min chart below shows the Bollinger Bands forex indicator in action.
Basic Trading Signals
Traders use Bollinger Bands in various ways. Here’s an example:
Buy signal: In an up-trending market, go long at the lower band (buy on dips- oversold).
Sell signal: In a down-trending market, go short at the upper band (sell on rallies- overbought).
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Download the “Bands.mq4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern indicator
Customization options: Variable (Bands Period, Bands Shift, Bands Deviations) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: Volatility
