This indicator is based on the Bollinger Bands .
The following MT4 indicator named Bollinger Bands trader is very useful for monitoring instantly for 10 symbols how wide the Bollinger Bands are, as well as the location of the Market price within the bands. It can be used to measure market volatility, identify potential breakouts and trade using the Bollinger Bounce.
How to use this indicator
Shows how wide ,in pips ,the Bands have been for a given currency for the current period and the previous 6 periods.
See how the market volatility and noise changes over time and identify potential breakouts and consolidations
Please note that some brokers use 5 pips pricing while others use 4. If your broker uses 5 pips then the bands will be 10 times bigger than if it were under 4 pips.
Shows the position of a currency’s market price within the Bands for the current period and the previous 6.
0% implies the market is exactly touching the lower band
50% implies the market is right in the middle of the band
100% implies the market is exactly touching the upper band
A negative value means the market price is bellow the lower band.
A value above 100% means the market price is above the upper band.
Different colours are used depending on the value to assist in visalisation.
Buy when the value is close to 0%.
Sell when the value is close to 100%.
When you attach the indicator to the chart you get the following options. Defaults are selected.
Period : Averaging period for calculation of the Moving Average
Deviations : Statistic for defying how wide the bands will be.
Currency #: Which currency pair to be analysed at position #
This indicator is also available in Multi Time Frames Version.