The Colored Bollinger Bands Metatrader 5 forex indicator is a technical tool that draws the Bollinger Bands, but this time, the bands gets filled with dissimilar colors based on the trend direction.
An uptrend is spotted when price crosses the upper bound, the MT 5 forex indicator gets filled with blue color, while a downtrend is spotted when price crosses the lower bound, and the fx indicator gets filled maroon color.
The gray colored filled area of the Colored Bollinger Bands indicator indicates that price has crossed the middle line, and the market is considered to be in a flat state.
The GBP/USD H1 chart below displays the Colored Bollinger Bands Metatrader 5 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when price trades somewhat around the upper bound of the Colored Bollinger Bands MT5 forex indicator, with the indicator getting filled blue.
Sell Signal: Go short when price trades somewhat around the lower bound of the Colored Bollinger Bands MT5 forex indicator, with the indicator getting filled maroon.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, price closes below the yellow middle line of the Colored Bollinger Bands forex indicator.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, price close above the yellow middle line of the Colored Bollinger Bands forex indicator.
Tips: The contraction or widening of the bands, tells traders the market is in a flat or trending state, in that order.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart pattern indicator
Customization options: Variable (Bollinger Bands period, Bollinger Bands width, Bollinger Bands applied price), Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: trend | volatility
Copy and paste the ibbfill2.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)