About the Bollinger Bands Squeeze with Demarker Indicator
The Bollinger Bands Squeeze with Demarker Indicator for MT4 is a robust momentum tool that blends volatility analysis with the DeMarker oscillator’s sensitivity.
This indicator is specifically designed to highlight the transition from low-volatility consolidation to high-momentum price expansions.
By leveraging Bollinger Bands to identify a “squeeze” and the DeMarker formula to gauge buying and selling pressure, it provides a filtered view of market dynamics.
When the histogram bars reside above the zero mark, the market environment is considered bullish, whereas bars below the mark indicate a bearish state.
Free Download
Download the “bollinger-squeeze-with-demarker.mq4” MT4 indicator
Key Features
- Combines Bollinger Band volatility cycles with DeMarker oscillator momentum.
- Features a histogram that oscillates around a neutral zero mark for clear signal interpretation.
- Identifies potential breakout opportunities when volatility begins to expand.
- Helps filter out market noise by providing a smoothed representation of price action.
- Allows for full customization of period settings to match specific trading styles and assets.
- Pairs effectively with moving averages and trend-following tools to build a complete system.
Indicator Chart
The Bollinger Bands Squeeze with Demarker Indicator is displayed in a separate window below the main price activity.
The chart features a series of histogram bars that fluctuate above and below a central zero line.
Bars rising above the zero level signify bullish momentum, while those dropping below it indicate a bearish trend.
Guide to Trade with Bollinger Bands Squeeze with Demarker Indicator
Buy Rules
- First, determine that the overall trend is upward using an exponential moving average or trend tool.
- Wait for the Bollinger Bands Squeeze with Demarker Indicator bars to cross back above the zero level from below.
- Ensure the price action on the main chart supports the bullish move.
- Open a long position as soon as the histogram confirms the bullish crossover on a closed candle.
Sell Rules
- Identify a primary downward trend using a higher-period simple moving average or ADX.
- Monitor the oscillator as the bars cross back below the zero level from above.
- Verify that the bearish momentum is increasing as the histogram extends downward.
- Execute a short trade once the indicator confirms the bearish shift below the zero mark.
Stop Loss
- Place the stop loss below the most recent swing low for buy trades.
- Position the stop loss above the nearest swing high for sell trades.
- Adjust the exit point to account for the current ATR to ensure the trade has room to breathe.
Take Profit
- Target the next major horizontal support or resistance level on the chart.
- Close the position manually if an opposing crossover signal occurs in the indicator window.
Bollinger Bands Squeeze with DeMarker + Entry Take Profit Forex Winner MT4 Strategy
This MT4 strategy combines the Bollinger Bands Squeeze with DeMarker Indicator and the Entry Take Profit Forex Winner Indicator to identify high-probability trading opportunities.
By using a trend indicator alongside an oscillator, traders can capture strong trend moves while minimizing false entries.
This strategy works well on H1 and H4 time frames, but it can also be adapted to lower time frames for scalping.
It is suitable for both beginner and experienced traders because it provides clear buy and sell signals, along with defined stop loss and take profit levels.
Buy Entry Rules
- Open a buy trade when the DeMarker oscillator bars cross above the zero level from below, signaling bullish momentum.
- Confirm the trend with the Entry Take Profit Forex Winner Indicator by ensuring a blue arrow appears, indicating an upward trend.
- Set a stop loss below the most recent swing low to limit potential losses.
- Set a take profit at the next resistance level or use the take profit level suggested by the Entry Take Profit Forex Winner Indicator for optimal exit.
Sell Entry Rules
- Open a sell trade when the DeMarker oscillator bars cross below the zero level from above, signaling bearish momentum.
- Confirm the trend with the Entry Take Profit Forex Winner Indicator by ensuring a red arrow appears, indicating a downward trend.
- Set a stop loss above the most recent swing high to protect against sudden reversals.
- Set a take profit at the next support level or use the take profit level suggested by the Entry Take Profit Forex Winner Indicator for maximum gains.
Advantages
- Combines trend confirmation and momentum indicators for high-probability trades.
- Works on multiple time frames from H1 to H4.
- Provides clear entry, stop loss, and take profit rules for consistent trading.
- Helps reduce false signals by using dual confirmation.
Drawbacks
- Requires patience, as trades should only be taken when both indicators confirm the signal.
- Can result in small losses during sideways markets.
- Less effective on very short time frames for inexperienced traders.
Case Study 1
On the EUR/USD H1 chart, the DeMarker oscillator crossed above zero while a blue arrow appeared on the Entry Take Profit Forex Winner Indicator.
A buy trade was opened with a stop loss below the recent swing low.
The trade moved in favor and hit the take profit level at 55 pips, resulting in a clear profit within two trading sessions.
Case Study 2
On the GBP/USD H4 chart, the DeMarker oscillator crossed below zero and a red arrow appeared on the Entry Take Profit Forex Winner Indicator.
A sell trade was executed with a stop loss above the recent swing high.
The price continued downward and reached the take profit level, securing 120 pips.
Strategy Tips
- Always wait for both indicators to confirm the trade to reduce false entries.
- Adjust stop loss and take profit levels according to the volatility of the currency pair.
- Consider using this strategy alongside other risk management tools, such as position sizing and trailing stops.
- Regularly review historical trades to identify patterns and optimize settings for your preferred time frames.
Download Now
Download the “bollinger-squeeze-with-demarker.mq4” Metatrader 4 indicator
FAQ
What is the benefit of combining Bollinger Bands with the DeMarker oscillator?
Bollinger Bands are excellent at identifying volatility “squeezes,” but they don’t always indicate the direction of the break.
By adding the DeMarker oscillator, the Bollinger Bands Squeeze with Demarker Indicator provides the necessary momentum context.
This ensures that you are entering a trade not just because volatility is high, but because the underlying demand or supply is shifting in a specific direction.
How do I filter out false signals during a sideways market?
The best way to filter signals is to use a secondary trend-following indicator.
Only take buy signals when a moving average shows an uptrend, and only take sell signals when it shows a downtrend.
By trading in alignment with the larger market structure, you significantly reduce the impact of “whipsaws” that can occur when the indicator crosses the zero level frequently in a range.
Can the default period settings be modified for scalping?
Yes, all settings are fully adjustable in the inputs tab.
For scalping purposes, you might consider lowering the period settings to make the indicator more responsive to quick price changes.
For swing trading on higher timeframes like the H4 or Daily, increasing the period will help smooth out the data and provide more significant trend signals.
Summary
The Bollinger Bands Squeeze with Demarker Indicator is a professional utility for traders who want to capitalize on momentum shifts.
By simplifying complex volatility data into a zero-line histogram, it provides an objective way to manage trade entries.
Its primary strength lies in its ability to highlight the start of a new momentum wave following a period of market consolidation.
To achieve the best results, this indicator should be used as part of a complete strategy that includes trend confirmation and sound risk management.
Waiting for the confluence of trend direction and histogram crossovers is a proven way to increase your edge.
