Bollinger Bands Squeeze With MACD Indicator MT4
Platform: MT4 Type: Momentum Last update: May 12, 2024The Bollinger Bands Squeeze With MACD Indicator for MT4 is a combination of some of the best forex indicators providing trend momentum insights and market entries ideas, plus it’s available to free download. It provides very solid signals, thus it’s a choice of many traders utilizing their trend-based strategies.
Sounds convincing? Let’s take a closer look at it and bring some practical trading examples.
Introducing the Bollinger Bands Squeeze With MACD Indicator
MT4 Indicator Overview
The download link of the Bollinger Bands Squeeze With MACD MT4 indicator is placed at the bottom of this post. Once you’re done, your trading chart should look similar to the example below.
As you can see, it is displayed within a separate window placed below the main trading chart and consists of two elements: colorful MACD bars and Bollinger Squeeze which is displayed as a tight moving average line.
Each color of MACD bars has a specific meaning. Green histograms suggest a bullish momentum. On the other hand, red histograms reflect a bearish trend. Finally, blue histograms indicate market indecision or a neutral area.
This forex indicator works well for rather short-term trading strategies such as scalping and day trading.
Settings
There are quite a few variables you can customize to fit your personal preferences and trading strategy. Play with these settings as it may translate into improved results.
How To Trade With The Bollinger Bands Squeeze With MACD Indicator?
Generally speaking, the signal trigger is based mainly on histogram bars’ specific values and colors. Let’s deep dive into how to exactly use that forex indicator in a few simple steps.
Bollinger Bands Squeeze With MACD: Buy Signal
- Bollinger Squeeze’s value is positive (above 0 level)
- MACD bars turn green
- Open long trade when the above conditions are met
- Set stop loss a few pips below the most recent market’s low point
- Take profit whenever the blue bar appears or close it after achieving a satisfying risk-to-reward ratio
Bollinger Bands Squeeze With MACD: Sell Signal
- Bollinger Squeeze’s value is negative (below 0 level)
- MACD bars turn red
- Open short trade when the above conditions are met
- Set stop loss a few pips above the most recent market’s high point
- Take profit whenever the blue bar appears or close it after achieving a satisfying risk-to-reward ratio
Conclusion
The Bollinger Bands Squeeze With MACD is a pretty good trading tool generating reliable signals. It fits all kinds of currency pairs and time frames. One can utilize it as a standalone technical analysis indicator or add it to any forex strategy as a supplement. The best results occur during strong market trends. What’s more, it gives an idea of when the market is neutral, thus when not to trade.
