Bollinger vs Envelopes Indicator
Bollinger vs Envelopes Indicator For MT4 provides short- and long-term forex trading signals using the classic Bollinger bands and Moving averages.
Description
The Bollinger vs Envelopes indicator for MT4 combines the Bollinger bands and envelopes using moving averages to provide buy and sell forex trading signals. As a result, forex traders get both short and long term trend trading signals. In fact, lower chart time frame provides short term trends and a higher time frame chart gives long term trend.
The indicator is simple to use and is suitable for new and advanced forex traders. The indicator works well in all chart time frames. However, lower time frames produce frequent signals and could result in many false bullish and bearish signals. Additionally, trading signal are valid only if the signal candle closes with a real body.
Bollinger vs Envelopes Indicator For MT4 Trading Signals
The indicator changes the color of the bullish trading signal candle to blue and the bearish signal candle to red. So, upon the appearance of a blue candle traders should enter the markets with a buy trade. However, the indicator does not provide stop loss or take profit levels.
So, traders should exit place a stop loss below the previous swing low and book profits at opposite trading signal or with good risk reward ratio. Conversely, if the trend changes to bearish a red candle appears. Traders should consider entering a sell position.
Though suitable for short term trading, the lower chart time frames like the M1, M5, M15, M30 generates frequent trades. So, traders should exercise caution while trading on these time frame charts.
Conclusion
The Bollinger vs Envelopes indicator for MT4 combines two good indicators. However, since both indicators are made up of moving averages they tend to provide forex trading signals frequently and may not be profitable.