Best Bollinger Bands for 4 Hour Stock Indices Chart

Adding MetaTrader 4 Bollinger Bands Indices Indicator

Step 1: Open the Navigator Window

Open the Navigator window as shown below; Go to "View" menu (click), then select the "Navigator" window (click), or From Standard Toolbar click the "Navigator" button or press short cut keyboard keys "Ctrl+N"

On the Navigator window, select "Indicators", (Double Click)

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Adding Bollinger Bands MetaTrader 4 Indices Indicator

Expand the menu by clicking the expand button marker (+) or double click the "indicators" menu, after this the button will appear as (-) and will now display a list as shown below - select the Bollinger Bands indices indicator from this list of indices indicators so as to add the Bollinger Bands indices indicator on the stock indices chart.

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How to Install Bollinger Bands Stock Indices Indicator MetaTrader 4

If the indices indicator you want to add is a custom Bollinger Bands indicator - for example if the Bollinger Bands indicator you want to add is a custom indices indicator you will need to first add this custom Bollinger Bands indices indicator on the MetaTrader 4 platform and then compile the custom Bollinger Bands indicator so that the newly added Bollinger Bands custom indices indicator appears on the list of custom stock indices indicators on the MetaTrader 4 platform.

To learn how to install Bollinger Bands indices indicator on MetaTrader 4, how to add Bollinger Bands indicator window to MetaTrader 4 and how to add Bollinger Bands indices custom indicator on MetaTrader 4 - How to add a custom Bollinger Bands indices Indicator on MetaTrader 4.

About Bollinger Bands Indices Indicator Tutorial

Stock Indices Bollinger Bands Technical Analysis and Bollinger Bands Indices Signals

Bollinger bands are made up of three lines. The middle line is a Moving Average - 20 stock indices price period Simple Moving Average.

The Bollinger bands are then plotted at a distance away from the moving average. These are the bands that form the lower and upper lines.

The distance where the bands are drawn is determined by another indicator called the standard deviation. Standard deviation is a measure of stock indices price volatility in the stock indices market.

Since the stock indices price volatility keeps on changing, the standard deviation will keep varying, and since Bollinger bands are drawn using the standard deviation the distance of the Bollinger bands will keep on adjusting themselves to the indices market volatility.

When the indices prices become more volatile, the Bollinger Bands widen - Bollinger Bands contract during less volatile periods.

The 3 Bollinger Bands are designed to encompass the majority of a indices price action movement. The middle Bollinger Band forms the basis for the indices trend, typically a 20 stock indices price period simple moving average.

This middle Bollinger Band also serves as the base for the upper and lower Bollinger Bands. The upper Bollinger band's and lower Bollinger band's distance from the middle Bollinger band is determined by stock indices price volatility. The upper band is drawn at +2 standard deviations above the middle Bollinger band while the lower Bollinger band is drawn at -2 standard deviations below the middle Bollinger band.

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Stock Indices Bollinger Bands Technical Analysis and Generating Indices Bollinger Bands Signals

• Bollinger Bands provide a relative definition of high and low of indices price

• Bollinger Bands are used to identify periods of high and low volatility

• Bollinger Bands are used to identify periods when indices prices are at extreme levels

Bollinger Bands Consolidation

The Bollinger Bands tighten as volatility lessens, this identifies periods of stock indices price consolidation. Sharp stock indices price break outs tend to occur after the Bollinger Bands tighten.

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Bollinger Bands Continuation Signal

If indices prices break through the upper or lower Bollinger Band move outside the Bollinger Bands a continuation of the current indices trend is expected.

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Bollinger Bands Reversal Indices Trading Signals

Bottoms and tops made outside the Bollinger Bands followed by bottoms and tops made inside the Bollinger Bands signals for indices reversals in the indices trend

The Bollinger Bands Head Fake

Traders should be on the lookout for false breakouts known as Bollinger Bands whipsaws or Bollinger Bands head fakes.

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Indices Price often breaks out in one direction immediately following the Bollinger Bands Squeeze causing many stock indices traders to think the stock indices price breakout will continue in that direction, only for stock indices price to quickly reverse and make the true and more significant stock indices price breakout in the opposite direction.

Traders acting quickly on the initial stock indices price breakout often get caught on the wrong side of the stock indices price action - while those traders expecting a "false breakout" can quickly close out their original indices trade positions and enter a trade in the direction of the stock indices price reversal. It is always good to combine Bollinger bands indicator with other confirmation indices indicators.

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