The Bollinger Bands Extreme Signal MT4 indicator alerts traders when price touches the upper or lower Bollinger Band extremes.
- A green dot plotted on the upper Bollinger Band represents a buy trade signal.
- A blue dot plotted on the lower Bollinger Bands represents a sell trade signal.
Use the indicator on the 1/5/15-minute chart for scalping and day trading during the London and New York trading sessions.
For swing trading, deploy the indicator on the 1/4-Hour Metatrader 4 trading charts.
The default Bollinger Bands period is set to 20. Feel free to experiment with this setting.
Signal alerts can be turned ON or OFF. Access the indicator’s inputs menu to modify its settings.
The USD/JPY 30-Minute chart below displays the Bollinger Bands Extreme Signal Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the Bollinger Bands Extreme Signal MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Go long when a green dot appears on the chart. Place a protective stop-loss a few pips below the gray middle Bollinger Bands line.
Sell Signal: Go short when a blue dot appears on the chart. Place a protective stop-loss a few pips above the gray middle Bollinger Bands line.
Trade Exit : Use your own method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (bands period, MA mode, MA price, MA shift) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: Bollinger Bands
Copy and paste the fiji-bb-alert.mq4 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)