The BoDi Metatrader 5 custom Forex indicator is used to compute the difference between the upper and lower Bollinger Bands.
It is well documented that during upward or downward impulse movement of the price, the bands are expected to widen (the difference between them increases), and when the movement diminishes the bands constricts (the difference decreases).
It isn’t really convenient to deploy these rules in gauging the start of the movement, since it only becomes clear at the end.
When the Bollinger Bands narrows, it only corresponds with the moment of calm in the clash between bulls and bears, and this last moment can be used for scanning the end point of the movement.
The BoDi Metatrader 5 Forex indicator gets shown in a separate window as histograms on the activity chart.
The EUR/USD H4 chart below displays the BoDi Metatrader 5 forex indicator in action
Basic Trading Signals
Buy Signal: Go long when the dodger blue histograms of the BoDi increase, while price breaks out above its previous high.
Sell Signal: Go short when the dodger blue histograms of the BoDi increase, while price breaks out below its previous low.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, the deep pink histogram of the BoDi MT5 Forex indicator pops up.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, the deep pink histogram of the BoDi MT5 Forex indicator pops up.
Tips: When the histograms of the BoDi Metatrader 5 forex indicator is shortened, it is an indicator of low volatility (meaning a possible break is imminent), while taller histograms of the BoDi MT5 fx indicator is an indicator of high market volatility.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart window indicator
Customization options: Variable (Period, Deviations, Apply to), Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the BoDi.ex5 indicator into the MQL5 indicators folder of the Metatrader 5 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL5 > Indicators (paste here)