Stochastic Bollinger Bands Metatrader 4 Forex Indicator
The Stochastic Bollinger Bands MT4 forex indicator is composed of the Stochastic oscillator and Bollinger bands indicators.
The indicator fluctuates between 0 and 100 value in a separate window below the main activity chart.
- Low indicator readings (20 and below) suggest the currency pair is oversold
- High indicator readings (80 and above) suggest the currency pair is overbought
In order to increase the number of profitable trades, it’s highly recommended to use the Stochastic Bollinger Bands trading indicator in agreement with a moving average forex indicator and then to trade in the direction of the underlying direction of the trend.
Overall trend up (price above the moving average)? Only trade oversold signals.
Overall trend down (price below the moving average)? Only trade overbought signals.
This indicator is suitable for scalpers, day traders and swing traders.
Feel free to experiment with the indicator settings.
The EUR/USD H1 chart below displays the Stochastic Bollinger Bands forex indicator in action.
Basic Trading Signals
Signals from the Stochastic Crossing Signals forex MT4 indicator are easy to interpret and goes as follows:
Buy Signal: Open buy trade position when the indicator value is low (oversold market conditions).
Sell Signal: Open sell trade position when the indicator value is high (overbought market conditions).
Trade Exit: Close the open trade when an opposite signal occurs, or use your own method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern
Customization options: Variable (StochasticPeriod, BollingerPeriod, BollingerDeviation, BollingerShift, Bars To Use) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the stochastic-bollinger-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)