B Bandwidth Ratio Indicator
MT4Also Available for MT5B Bandwidth Ratio Indicator For MT4 helps forex traders to identify the Bollinger bands squeeze pattern and to anticipate market volatility
Description
The B Bandwidth ratio indicator for MT4 plots a histogram based on the distance between the upper and lower Bollinger bands. Price volatility dictates the distance between the upper and lower Bollinger bands. A higher volatility increases the bandwidth distance while a lower volatility provides a smaller bandwidth.
According to John Bollinger, after a period of volatility price is expected to move significantly. So, forex traders can use this indicator to identify the volatility in comparison with the regular market hours. However, this indicator does not provide forex trading signals or market direction.
This indicator works well for new and advanced forex traders. Furthermore, it works in all intraday chart as well as daily, weekly and monthly charts. Bollinger bands form an integral part of many automated trading strategies so traders can rely on them and trade in confluence.
B Bandwidth Ratio Indicator For MT4 Trade Setup
The indicator plots a blue oscillator line based on the distance between the upper and lower Bollinger bands indicator. A squeeze pattern occurs if the Bollinger bands contract and form a narrow band. According to the Bollinger bands trading rules after a squeeze pattern, traders can anticipate an increased volatility.
Traders should use this indicator to identify a squeeze pattern. This helps forex traders to anticipate aggressive price movements and prepare trading strategies to accommodate increased volatility. Generally, forex traders use the Bollinger bands bandwidth to identify best stop loss points. However, traders would increase the stop loss levels after a squeeze anticipating increased volatility.
Conclusion
In summary, the B Bandwidth ratio indicator for MT4 plots an oscillator based on the volatility. In fact, the indicator is an essential tool for forex traders using Bollinger bands.
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