The Sigma Bands forex Metatrader 4 indicator is an advanced Bollinger Bands indicator with a lot of options to choose from.
This indicator has the ability to plot Bollinger bands based on the following types of moving average:
- Simple moving average
- Exponential moving average
- Smoothed moving average
- Linear-weighted moving average
In up trending markets, the Sigma Bands will point upwards and traders look to open a buy position near the lower support Signam bands.
Vice versa, in down trading markets, the Sigma Bands will point downwards and traders look to open a sell position near the upper Sigma resistance bands.
This is a good indicator for all kind of trading styles.
The AUD/USD H4 chart below displays the Sigma Bands forex indicator in action.
Basic Trading Signals
The Sigma Bands indicator can be traded as follows:
Buy Trade: In an uptrend, look to buy near the lower bands (support)
Sell Trade: In an downtrend, look to sell near the upper bands (resistance)
Trade exit: For long trades, look to take profits near the upper Sigma Bands (resistance)
For short trades, look to take profits near the lower Sigma Bands (support)
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern
Customization options: Variable (MA Period, Bars for count, Type MA for Bands, Applied price MA, MA color) 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 Sigma_Bands.mq4 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)