Advanced Bollinger Bands Forex Indicator MT4 Free Download

The Advanced Bollinger Bands is a trend-following forex and stock trading indicator that helps traders identify accurate buy/sell zones. Unlike regular Bollinger bands, this indicator demonstrates the dynamic trendlines alongside overbought/oversold levels.

Technically, the indicator points to both trend continuation and reversal positions. These features allow traders to go for trend-following and swing trading simultaneously.

Furthermore, the Bollinger Bands also suits futures, metals, energy, and cryptocurrency trading apart from forex and stocks. Consequently, this indicator allows you to trade any financial assets within your MetaTrader 4 platform.

This guide, including chart examples, explains the most effective technique for determining buy-sell signals using the Bollinger Bands indicator in MT4.

How to trade using the Advanced Bollinger Bands indicator in MT4

The green bars above the mid-Bollinger bands portray the buy zone. Conversely, the red bars at the bottom of the bands show the sell zone. While looking for a trend-following entry, we need to assess the price’s intention of staying in the green or red color zone of the Bollinger bands.

As we can see in the above example, the price was initially held inside the red zone, indicating a downtrend in the market. However, the price entered the buy zone but was rejected by the sellers from the higher Bollinger bands. Later, the price breaks the mid-band and triggers a sell entry, assuming the market will rejoin the recent bearish rally.

While going short, we’ll use the higher Bollinger band as a stop-loss position. Also, we’ll hold our sell positions until the price breaks above the mid-band. Alternatively, you can manually exit if the trade already earns your targeted risk-to-reward ratio.

While entering long, consider a bullish breakout at the mid-band during an uptrend market condition. Set the stop loss below the lower Bollinger band and hold the long position until the price enters the selling zone.

Conclusion

The Advanced Bollinger Bands offer a simple demonstration of market trend status, which is easy to read and follow. Besides identifying market momentums and trend conditions, it also helps measure price volatility levels. Moreover, it specifies potential stop-loss and take-profit areas besides anticipating precise buy/sell positions.

Advanced Bollinger Bands Forex Indicator MT4 Free Download

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