The Bollingers Bands Squeeze with MACD forex indicator for MT4 looks a bit similar to this one, but is based on Bollinger Bands together with the popular MACD indicator.
The indicator draws green, blue and red histograms on the Metatrader 4 chart.
- Blue histograms are considered to be neutral area’s. Price action is flat or range-bound.
- Green histograms are considered to be bullish. This could be a signal to go long the currency pair.
- Red histograms are considered to be bearish. This could be a signal to go short the currency pair.
This indicator works good for short-term trading such as scalping and day trading.
For swing trading purposes, use it together with a trend following indicator.
The AUD/USD 5-Minute chart below displays the Bollingers Bands Squeeze with MACD Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the Bollingers Bands Squeeze with MACD MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Initiate a long trade when the indicator starts drawing green histogram bars above the zero level (bullish price action).
Sell Signal: Initiate a short trade when the indicator starts drawing red histogram bars above the zero level (bullish price action).
Blue bars: Do nothing or stick with your open position until the signal reverses from buy to sell or sell to buy.
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 (trigger type, stochastic period, cci period, MACD fast, MACD slow, Momentum, RSI period) 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 bollinger-squeeze-with-macd.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)