Sigma Bands Indicator For MT4

Sigma Bands Indicator For MT4 on a trading chart

What is Sigma Bands Indicator For MT4?

The Sigma Bands Indicator For MT4 is a trend indicator. It is commonly viewed as an advanced version of the Bollinger Bands indicator due it its range of options.

 

FREE Sigma Bands Indicator

Download the FREE Sigma Bands Indicator for MT4.

To receive my email 100% sure: 
Put my email on your whitelist!

 

Partially Automated Trading Besides Your Day Job

Alerts In Real-Time When Divergences Occur

My Recommended MT4/MT5 Broker

 

Compared to the Bollinger Bands which only plots three-band lines, the Sigma Bands Indicator For MT4 plots five-band lines. This makes it more reliable and dependable.

It is normally based on the Simple Moving Average, Exponential Moving Average, and Liner-Weighted Moving Average.

Looking at the above chart, you can see the five bands, all with different colors for easy interpretation. Starting from the topmost which is blue, followed by the green and the red at the center. The blue and the green band lines are in pairs forming channels.

Customizing the Sigma Bands Indicator For MT4

Depending on your trading strategy and the background color of your trading chart, you may be forced to change some of the default parameters of the Sigma Bands Indicator For MT4. Actually, it is very easy to customize this indicator.

To start with let us start with the color of the band lines. You could have your trading chart background color set to another color that is very close to the colors of the band lines that are plotted by the indicator and you will have to change the color of the band lines so that they can be easily visible. To do so, you just right-click on any of the band lines and click on the Sigma Bands Indicator For MT4 properties.

Viewing Sigma Bands Indicator For MT4 properties when you have already loaded in on the chart

This will take you to a dialog box where you can customize the indicators inputs, color, and visualization. To customize the colors, click on the colors tab. You shall be directed to a window like the one below.

Customizing the colors

You can change the colors to whatever colors you want. However, it is advisable that the lines that are piloted as blue and green by default are given the same colors even when you change the color. This is so as to make it easy to identify the channel.

It is also worth noting that there are two color inputs that are set as none; these two do not interfere with the visualization of the bands and are therefore of no importance and will not affect anything if you set them to any color.

Depending on the trading strategy, you could also want to change some of the inputs of the indicator. To do so, click on the inputs tab. You shall be directed to a dialog box as below.

Customizing the inputs

The Sigma Bands Indicator For MT4 is one of a kind since other than the MA Periods, the Bars for count Sigma, the applied price and MA color, you could also choose the type of moving average you would like to apply. If you click on the Exponential MA, which is normally the default Moving Average applied, you shall see a drop-down of other four Moving Averages from which you can choose from like in the below chart.

Choosing the type of moving the average to apply

By changing the MA period, the bands either shift up or down the chart. However, the default value used for the MA Period is the best since it brings the bands close to the candlesticks/bars.

The Bars for count sigma is used for refining the signals. The lower the value, the more refined the signal that is given.

Sigma Bands Indicator For MT4 with the bars for count sigma set to 20

The maximum advisable value for the bars for count sigma is normally the default value of 200. Above this value, the signals will not be very accurate and easy to interpret.

Interpreting the Sigma Bands Indicator For MT4

As mentioned earlier, the Sigma Bands Indicator For MT4 is a trend indicator. Therefore, it is normally used for identifying the trend of the market.

Just like the moving average, the bands of the Sigma Bands Indicator For MT4 normally follow the trend of the candlesticks. If the bands are moving downwards, then the prevailing trend is bearish. On the other hand, if the bands are moving upwards, then the prevailing trend is bullish.

In our examples, we shall use the sigma bands with the bars for count sigma set at 20.

  • When to place buy

You can only place a buy when you are certain that the prevailing market trend is bullish. Furthermore, the bullish trend has to be strong and it should not be at its ‘dying minutes’. You have to strike when the nail is hot. You have to act just when the trend starts.

To do so, you have to wait for the bands of the Sigma Bands Indicator For MT4 to all turn upwards. Then, the candlesticks should form above the red center line. However, you should avoid placing an order using the candlestick that has crossed the red line; instead, wait for the first candlestick that shall start forming above the red line

Placing and closing a buy order using the Sigma Bands Indicator For MT4 

To close the buy order, you should wait for the candlesticks to cross the red center band line moving downwards.

  • When to place a sell

You can only place a sell when you are certain that the prevailing market trend is bearish. Similar to when placing a buy, the bearish trend has to be strong and it should not be at its ‘dying minutes’. You have to strike when the nail is hot. You have to act just when the trend starts.

To do so, you have to wait for the bands of the Sigma Bands Indicator For MT4 to all turn downwards. Then, the candlesticks should form below the red centerline. However, you should avoid placing an order using the candlestick that has crossed the red line; instead, wait for the first candlestick that shall start forming below the red line.

Placing and closing a sell order using the Sigma Bands Indicator For MT4

To close the sell order, you simply wait for the candlesticks to cross the red center line moving upwards.

NB: You should avoid trading when the market is in not trending. During such times the bands of the Sigma Bands are very close to each other.

 

About Me

I'm Mike Semlitsch the owner of PerfectTrendSystem.com. My trading career started in 2007. Since 2013 I have helped thousands of traders to take their trading to the next level. Many of them are now constantly profitable traders. 

The following performance was achieved by me while trading live in front of hundreds of my clients:

Connect With Me:  

Results From 5 Months!
This service starts soon! Be the first who get's notified when it begins!

This FREE Indicator Can Transform
Your Trading!

FREE Indicator + Telegram Group


Request the Ultimate Double Top/Bottom Indicator which is used by 10,000+ traders.