Best Bollinger Bands Setting for H4 Stock Indices Chart

Adding MT4 Bollinger Bands Indicator

Step 1: Open MetaTrader 4 Platform Navigator Panel

Open MT4 Navigator window panel as illustrated & shown below: Navigate to "View" menu (click it) & then choose "Navigator" window panel (click), or From Standard Toolbar click on the "Navigator" button or use short-cut keyboard keys "Ctrl+N"

On MT4 Navigator window, select 'Technical Indicators', (Double-Click)

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Adding Bollinger Bands MT4 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 indicator from this list of indices indicators so that to add the Bollinger Bands indicator on the stock indices trading chart.

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How to Setup Bollinger Bands Stock Indices 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 in MetaTrader 4 software & then compile the custom Bollinger Bands indicator so that the newly added Bollinger Bands custom indices indicator pops up on the list of custom indicators in MetaTrader 4 software.

To learn how to install Bollinger Bands indicator on MT4, how to add Bollinger Bands indicator window to MT4 and how to add Bollinger Bands indices custom MT4 technical indicator on MT4 - How to add a custom Bollinger Bands indices Indicator in MetaTrader 4.

About Bollinger Bands Stock Indices Technical Indicator Guide

Bollinger Bands Technical Analysis & Bollinger Bands Stock Indices Signals

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

The Bollinger bands trading indicators are then drawn at a distance away from the moving average technical indicator. These are bands that form the lower & upper lines.

The distance where the bands are drawn is decided by another indicator called the standard deviations. 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 deviations will keep varying, and since Bollinger bands are drawn using the standard deviations the distance of the Bollinger bands will keep on adjusting themselves to the indices market volatility.

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

The Three Bollinger Bands are designed to encompass the majority of a indices price action movement. Middle Bollinger Band forms the basis for the stock indices price 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 market 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 and How to Generate Stock Indices Bollinger Bands Signals

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

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

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

Bollinger Bands Consolidation

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

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Bollinger Band Continuation Trading Signal

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

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Bollinger Bands Reversal Trading Signals

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

The Bollinger Bands Head Fake

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

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