I-Bands Price Indicator
MT4The I-Bands Price indicator for MT4 is an advanced Bollinger Bands indicator that detects market momentum and exhaustion zones.
Description
The I-Bands Price Indicator for MetaTrader 4 (MT4) is an oscillating tool that evaluates the momentum and price exhaustion zones in the market. It’s an advanced version of the regular Bollinger Bands indicator optimized to function as an oscillator.
The indicator would assist you in knowing when the momentum of an instrument increases or decreases, which is invaluable to making better trading decisions. Besides, it also detects when the price has reached a potential exhaustion (overbought/oversold) zone, which can also help you to anticipate a trend reversal.
How to Trade with the I-Bands Price Indicator
The above image depicts the market analysis of the I-Bands Price indicator on the EURUSD pair. The yellow line that runs beneath the main chart is the I-Bands Price indicator, while the red horizontal lines were manually added to help amplify the zones of interest.
The indicator oscillates between the 0 and 1 level. Furthermore, 0.5 is the median line, which determines the trend bias of the market. Therefore, a strong bullish trend is indicated when the oscillator moves above the 0.5 median line. Conversely, a bearish bias is indicated when the oscillator falls below the median line.
In addition, the distance between the oscillator and the median line reveals the level of the current momentum in the market. For instance, when the oscillator moves farther away from the median line, it suggests an increase in the momentum of that asset.
Finally, the 0.00 and 1.00 levels are the potential oversold and overbought zones, respectively. So, you may look for candlestick reversal patterns (e.g., bullish/bearish engulfing) around the zones for a possible buy or sell entry.
Conclusion
The I-Bands Price indicator for MT4 is a technical analysis tool that would come in handy to help you identify increases/decreases in momentum and optimal zones for trade entries/exits.
1 2 3 4 5