Best Bollinger Bands for 4 Hour Stock Chart

Adding MetaTrader 4 Bollinger Bands Indicator

Step 1: Open Navigator Window Panel on Software

Open Navigator panel as illustrated and shown below: Navigate to 'View' menu (click it) and then choose 'Navigator' window (click), or From Standard Toolbar click on 'Navigator' button key or press short-cut key-board keys 'Ctrl+N'

On Navigator window, choose 'Indicators', (Double-Click)

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Adding Bollinger Bands MetaTrader 4 Indicator

Expand 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 indicator from this list of indicators so that to add the Bollinger Bands indicator on the stock chart.

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How to Setup Bollinger Bands Indicator MetaTrader 4

If the technical indicator you want to add is a custom Bollinger Bands indicator - for example if the Bollinger Bands technical indicator you want to add is a custom indicator you will need to first add this custom Bollinger Bands indicator on the MetaTrader 4 software & then compile the custom Bollinger Bands indicator so that the newly added Bollinger Bands custom indicator pops up on the list of custom indicators on the MetaTrader 4 software.

To learn how to install Bollinger Bands indicator on MetaTrader 4, how to add Bollinger Bands indicator panel to MT4 and how to add Bollinger Bands custom indicator in MT4 - How to add a custom Bollinger Band indicator in MetaTrader 4.

About Bollinger Bands Technical Indicator Guide

Bollinger Bands Technical Analysis & Bollinger Bands Signals

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

Bollinger bands indicators are then plotted at a distance away from the moving average indicator. These are bands which form the lower & upper lines.

The distance where the bands are plotted is decided by another indicator known as the standard deviation. Standard deviation is a measure of stock price volatility in the stock market.

Since the stock price volatility keeps on changing, the standard deviations 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 market volatility.

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

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

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

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Bollinger Bands Technical Analysis & How to Generate Stock Bollinger Bands Signals

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

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

• Bollinger Band are used to identify periods when the prices are at extreme zones

Bollinger Bands Consolidation

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

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Bollinger Band Continuation Signal

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

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Bollinger Bands Reversal Signals

Bottoms & tops made outside the Bollinger Bands followed by bottoms & tops made inside the Bollinger Bands signals for reversals in the 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 traders to think the stock price break out will continue in that specific direction, only for stock price to quickly reverse & make the true & more significant stock price break out in opposite direction.

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

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