Advanced Bollinger Bands

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Advanced Bollinger Bands Forex Indicator MT4

As we can see in the above example, the price was initially held inside the red zone, indicating a downtrend in the market. However, the price entered the buy zone but was rejected by the sellers from the higher Bollinger bands. Later, the price breaks the mid-band and triggers a sell entry, assuming the market will rejoin the recent bearish rally.

While going short, we’ll use the higher Bollinger band as a stop-loss position. Also, we’ll hold our sell positions until the price breaks above the mid-band. Alternatively, you can manually exit if the trade already earns your targeted risk-to-reward ratio.

While entering long, consider a bullish breakout at the mid-band during an uptrend market condition. Set the stop loss below the lower Bollinger band and hold the long position until the price enters the selling zone.

Conclusion
The Advanced Bollinger Bands offer a simple demonstration of market trend status, which is easy to read and follow. Besides identifying market momentums and trend conditions, it also helps measure price volatility levels. Moreover, it specifies potential stop-loss and take-profit areas besides anticipating precise buy/sell positions.

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