Any FX trader probably has used a Bollinger Band at some point in his trading career. The MT4 indicator that we introduce in this article makes it easier to use such a Bollinger band.
This "Custom_Bands" allows you to change the values used for calculating Bollinger Bands more freely.
An example depicting a Bollinger band with a smooth moving average instead of a simple moving average. Open price used for calculation.
Bollinger bands are calculated based on moving averages. In the normal Bollinger band, even if you can specify the calculation period of the moving average line, you cannot specify the moving average line calculation method (exponential smoothing moving average, smooth moving average, etc.) or the price used for the calculation (open price, closing price, etc.).
However, this "Custom_Bands" can also freely specify the moving average line calculation method and the price used for the calculation. This allows you to use a Bollinger band that suits you more.
In the example below, the normal Bollinger band and this indicator are compared. In this way, you can see that the rendering method changes considerably between this indicator and a normal Bollinger band.
Comparison with a standard Bollinger Band. The standard Bollinger Band is displayed in green.
How to use:
Try using it as a normal Bollinger band. For example, if the price touches the Bollinger Band, you could set up a contrarian trade. It can also be used to determine trends, determine profits, and cut losses.
In particular, this indicator allows you to set various values with parameters. So it's a good idea to experiment and find the best combination for your strategy.
- Moving Average Method - The period used for MA calculation
- Applied Price - The price used for MA calculation
- Bands Period - The period used for BB (Bollinger Bands) calculation
- Bands Shift - The shift used for BB calculation
- Bands Deviations - The deviations of BB
Download the "Custom_Bands" MT4 indicator from the button below
Tip: Can’t open the downloaded archive file (ZIP or RAR)?
Do you need help with installing this indicator into MT4 for Windows or Mac OS? Our guide HERE will help you.