The Band indicator is based on volatility. The band indicator automatically widen when volatility increases and narrow when volatility decreases. This dynamic nature of Bollinger Bands also means they can be used on different securities with the standard settings. For signals, Bollinger Bands can be used to identify M-Tops and W-Bottoms or to determine the strength of the trend.Thousands of forex traders are using this special indicator in their metatrader terminal. By using band metatrader indicator you will be able to unleash your trading expertise in a significant level. Surely this will add an extra ease for your successful trading.
Band indicator for metatrader
Band indicator is a versatile indicator combining moving averages and standard deviations and is one of the most popular technical analysis indicator available for traders. There are three components to the Bollinger Band indicator.First one is moving average, second one is upper band and third one is lower band. A Band indicator is developed by developed by famous technical trader John Bollinger.A band plotted two standard deviations away from a simple moving average.Bollinger Bands consist of a center line and two price channels (bands) above and below it. The center line is an exponential moving average; the price channels are the standard deviations of the stock being studied. The bands will expand and contract as the price action of an issue becomes volatile (expansion) or becomes bound into a tight trading pattern (contraction).
Band indicator was created by using the original moving average indicator. The indicator displays itself in the form of three lines: the central one is the standard MT4/MT5 moving average (which can be simple, exponential or weighted), the upper line is the same as the central one but lifted up by 2% (by default), the lower line is the same as the central one but pushed down by 2%. Those two additional lines serve as the support and resistance levels. The indicator is available for both MT4 and MT5.
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