Bollinger Bandwidth 1.0 Indicator For MT5
Table Of Contents:
- Bollinger Bandwidth 1.0 Indicator For MT5
- Trading ideas with the Bollinger Bandwidth 1.0 Indicator For MT5
- Bollinger Bandwidth 1.0 Indicator For MT5 - Buy Entries
- Bollinger Bandwidth 1.0 Indicator For MT5 - Sell Entries
- Bollinger Bandwidth 1.0 Indicator For MT5 - Conclusion
The Bollinger Bandwidth 1.0 Indicator For MT5 draws a histogram in a subwindow that contains the information of the width of the bollinger bands. With this indicator you will have a clean look on the candle chart while you can still apply trading tactics that are based on the bollinger bands indicator. Such tactics are e.g. trading the bollinger band squeeze.
The Bollinger Bandwidth 1.0 Indicator For MT5 is a systematic tool that eliminates the errors associated with the Bollinger band indicator. This indicator carefully analyzes the key distance between the upper and lower bands of the BB indicator and plots a singular point to create a unique signal line.
The unique signal line can be adjusted by bringing change in the deviation and period settings. However, the default deviations 2 tends to work best for the popular trading instrument. Since the period for the Bollinger Bandwidth 1.0 is set to 20, it is important to start trading in the 1 hour or higher time frame. If you intend to trade in the minute chart, you should be looking for trade setups with higher period settings.
Unless you are extremely skilled in analyzing the price data, you should never bring any change to the default settings. Try to get used to the regular settings of this indicator by using the demo account and this should boost your skills and allow you to take more trades without having many problems. As the price movement is reflected by the signal line of this indicator, it is important to have trust in your existing trading method.
Trading ideas with the Bollinger Bandwidth 1.0 Indicator For MT5
The rookies often trade without having faith in their trading method. They tend to prefer the reading from the indicator rather than their trade setup. But the trade setups are the most important factors in the trade execution process. To improve your trading skills and increase the chance of winning the trades, you should be analyzing the important levels of the market from a different point of view.
First of all, test your trading method in the demo environment and see if you feel comfortable with your existing trading strategy. If not, revise your trading method to improve your chance of winning. During the revision of your trading method, you can include the Bollinger Bandwidth 1.0 indicator to the edge. This will allow you to curate the trading method in a much better way.
It might take a while to get the perfect edge but with the blessings of a practice account, you can learn the important details without risking any real money. As you get skilled by analyzing the important market details, you can slowly use advanced techniques and use the Bollinger Bandwidth 1.0 to execute long and short orders. Let’s get into the core concept of the Bollinger Bandwidth 1.0 indicator.
Bollinger Bandwidth 1.0 Indicator For MT5 - Buy Entries
To the inexperienced traders, minor and major support plays the same role. But the experts love to focus on the major support as it increases the chance of winning the trades to a great extent. Analyze the support zone as a position trader so that you don’t have to deal with the weak trading zone.
After the determination of the buying signal at the demand zone, analyze the reading from the Bollinger Bandwidth 1.0. The indicator should show an ascending slope in the chart. In short, you should see the cobalt color signal line rising higher from the oversold territory. Before opening the long trade, analyze the risk to reward ratio based on SL and TP.
Focus on the time frame so that you don’t end up scalping the market. After evaluating the important metrics, open your buy order. Expecting to win most of the trades just because the Bollinger Bandwidth 1.0 is not a wise decision. You should be always ready to accept some losing trades as it will improve the chance of winning the trades.
Bollinger Bandwidth 1.0 Indicator For MT5 - Sell Entries
The supply zone is the key spot where you can find the selling levels. The selling levels are a very important zone as you find the bearish signals on that spot. With your existing edge, you have to analyze the price movement of the trading instrument and look for the potential rejection pattern.
But if you look to short the instrument at the break of the support level, you have to wait for a big bearish candle. Once you have determined the short trade setup in the higher time frame, move to the reading of the Bollinger Bandwidth 1.0. The cobalt blue signal line should show a negative slope. If the setup is formed at the break of the support, you should see the signal line has already fallen to a great extent and aggressively heading towards the south zone.
On the contrary, when you get the signal line at the resistance zone, you should fresh momentum change in the signal line. The change in momentum tells you the bearish trade setup is valid and you do have a great chance to win money from that particular trade. By analyzing the RR ratio, and risk percentage level, you can take your short trade.
Bollinger Bandwidth 1.0 Indicator For MT5 - Conclusion
The function of the indicator is very limited. It’s not a complete trading method which can help you to find the best possible trades. Indicators are considered as the most premium tool which can find the potential buying and selling signals with high accuracy. In short, you can consider the indicator as a trade filter tool.
It might take a while to get used to the Bollinger Bandwidth 1.0 indicator but once you do, you will see the change in your performance. Investors are requested to use this indicator in a higher time frame only. Regarding the major news, the signal lines in the indicator can show drastic change when unexpected news hit the market. To avoid getting stopped out from the trades, you can ignore the major news factor and stay on the sideline.
However, those who are looking to use the Bollinger Bandwidth 1.0 indicator to trade the key news, must have strong fundamental skills and understand the price action signals very well. Though it’s a very advanced way to deal with the extreme situation of the market, you can master this technique by knowing the three core forms of market analysis. Unless you have a strong grip on technical, fundamental, and sentiment analysis, use Bollinger Bandwidth 1.0 to trade in the stable market.