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 its own or can be used in agreement 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.
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 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 fixed profit target.
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
Copy and paste the iBands_Advanced_Histo_v1.0.ex4 indicator into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)