B Bandwidth Ratio Indicator
MT5Also Available for MT4The B Bandwidth Ratio indicator for MT5 helps forex traders identify the Bollinger Bands compression pattern and anticipate market volatility.
Description
The B Bandwidth Ratio indicator for MT5 builds a histogram based on the distance between the upper and lower Bollinger Bands. Price volatility determines the distance between the upper and lower Bollinger Bands. Higher volatility increases bandwidth distance, while lower volatility provides less bandwidth.
According to John Bollinger, after a period of volatility, the price is expected to move significantly. Thus, forex traders can use this indicator to determine volatility compared to regular market hours. However, this indicator does not provide Forex trading signals or market direction.
This indicator is well suited for new and experienced Forex traders. Moreover, it works on all intraday charts as well as daily, weekly and monthly charts. Bollinger Bands are an integral part of many automated trading strategies, so traders can rely on them and trade in confluence.
B Bandwidth Ratio Indicator For MT5 Trade Setup
The indicator plots the yellow oscillator line based on the distance between the upper and lower Bollinger Bands. A squeeze pattern occurs when the Bollinger Bands compress and form a narrow band. According to Bollinger Bands trading rules, traders can expect an increase in volatility after a squeeze pattern.
Traders should use this indicator to identify a squeeze pattern. This helps forex traders anticipate aggressive price movements and prepare trading strategies to account for increased volatility. Typically, Forex traders use Bollinger Bands to determine the best stop loss points. However, traders increase stop loss levels after a squeeze in anticipation of increased volatility.
Conclusion
Thus, the B Bandwidth Ratio indicator for MT5 displays an oscillator based on volatility. In fact, the indicator is an essential tool for forex traders using Bollinger Bands.
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