Introduction to the Volitility BB Indicator
The Volitility BB Indicator measures and displays the volatility of the Bollinger Bands. The indicator doesn’t provide trading signals but is used to get know a degree of Bollinger Band variation of an asset. A trader should pay attention to periods of low volatility and high volatility.
The Volitility BB Indicator fits all kinds of timeframes and currency pairs. It is displayed in a separate window placed just below the main trading chart. The default settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences.
Example trade with the Volitility BB Indicator
Below is the screenshot of an example trade with the Volitility BB Indicator.
As you can see on the chart above, the volatility of Bollinger Bands was really low for the period on the left side of that chart. However, a bit later it increased drastically and reached 100%. Such a meaningful shift of volatility provides a high probability of powerful market movement. The price was below the middle line of the BB, therefore it was an opportunity for a short trade.
How to set up the Volitility BB indicator in MetaTrader (MT4)?
Download the Volitility BB.rar archive at the bottom of this post, unpack it, then copy and paste the Volitility BB.ex4 or Volitility BB.mq4 indicator files into the MQL4 folder of the Metatrader 4 trading platform.
You can gain access to this folder by clicking the top menu options, which goes as follows:
File > Open Data Folder > MQL4 > Indicators (paste here).
Now go to the left side of your MT4 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.
The Volitility BB indicator is well worth adding to your trading collection. A good forex indicator will most probably enhance your chance of success. Nonetheless, remember about having realistic expectations. Just like any other technical analysis tool, is not capable of providing accurate signals 100% of the time. Thus, this forex indicator provides false signals occasionally. Its performance will vary significantly depending on market conditions. Feel free to develop your own trading system based around it. Don’t forget that we still have more great free forex MT4 indicators to download and try.
Download Free Forex MT4 Volitility BB Indicator
To download the Volitility BB indicator for Metatrader 4 (MT4) for free just click the button below: