Best Bollinger Band for 4 H XAUUSD Chart

How Do I Add Bollinger Bands Indicators on MetaTrader 4 XAU/USD Charts

Step 1: Open the Navigator Window on Platform

Open Navigator window as is illustrated and shown below - Go to 'View' menu (then click on it) & then select and choose 'Navigator' window (click), or From the Standard Toolbar click the 'Navigator' button or press the key board short cut keys 'Ctrl+N'

On Navigator window, select and choose "Indicators", (DoubleClick)

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Step 2: Expand Indicators Menu on the Navigator

Expand the expand(+) button (+) or doubleclick the 'indicators' menu, afterwards this particular button will appear and be shown as (-) & will now display a list as illustrated and shown below - choose the Bollinger Band indicator from this list of indicators so as to add the Bollinger Bands indicator to the chart.

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How to Set Custom Bollinger Band to Meta Trader 4

If the technical indicator you as the trader want to add is a custom Bollinger Band indicator - for example if the Bollinger Band indicator you want to add is a custom indicator you'll need to first add this custom Bollinger Band indicator on the MetaTrader 4 platform software and then compile the custom Bollinger Band indicator so that as the newly added Bollinger Band custom indicator shows up on the list of custom indicators on the MetaTrader 4 platform software.

To learn how to install Bollinger Bands indicator in MT4 Platform, how to add Bollinger Band indicator window panel to MT4 and how to add Bollinger Bands custom indicator in the MT4 Software - How Do I add a custom Bollinger Band indicator in MT4 Platform Software.

Bollinger Band Indicator Explained with Example

Bollinger Band Analysis and Bollinger Bands Signals

Bollinger Bands are made up of 3 lines. The middle line is a MA - 20 xauusd gold price period Simple Moving Average - SMA Indicator.

Bollinger bands indicators are then plotted at a distance away from the moving average indicator. These are the bands which form the lower and upper lines.

The distance where the bands are plotted is decided by another technical indicator known as the standard deviation. Standard deviation is a gauge of volatility of price in the market.

Since the price volatility keeps changing, the standard deviation will keep fluctuating/oscillating, and since Bollinger band lines are drawn using the standard deviation method/calculation the distance of the Bollinger bands will keep on adjusting themselves to the price volatility conditions.

When the prices become more volatile, the Bollinger Bands indicators widen - Bollinger Band contract during the less volatile periods.

The 3 Bollinger Bands are designed so as to encompass the majority of a price action movement. The mid Bollinger Band forms basis for the trend, typically a 20 xauusd gold price period simple MA.

This middle Bollinger Band also serves as the base for the upper and lower Bollinger Bands. The upper Bollinger band's & lower Bollinger band's distance from the mid Bollinger band is determined by xauusd gold price price volatility. The upper band of this indicator is plotted at +2 standard deviations above the mid Bollinger Bands while the lower band is plotted at -2 standard deviations below the mid Bollinger Band.

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Bollinger Band Analysis & How to Generate Gold Bollinger Bands Signals

• Bollinger Bands provide a relative definition of high and low of price

• Bollinger Bands are used to identify periods of high & low price volatility

• Bollinger Bands are used to spot periods when prices are at extreme levels

the Bollinger Bands Squeeze

Bollinger Band tighten as price volatility reduces, this identifies periods of price consolidation. Sharp price break outs tend to come after the Bollinger Band indicators tighten.

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the Bollinger Bands Bulge

If prices break through upper or lower Bollinger Bands technical indicator and move outside the Bollinger Bands a continuation of current market trend is expected.

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Bollinger Band Reversal Signals

Bottoms and tops made outside the Bollinger Band followed by bottoms & tops made inside the Bollinger Band signals for reversals in the market trend

Bollinger Bands Whipsaw

Traders should be on lookout for false breakouts known as Bollinger Bands whipsaws or Bollinger Bands head fakes.

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Price often breaks-out in one particular direction immediately following the Bollinger Band Squeeze causing many traders to think the price break out will continue in that particular direction, only for price to quickly reverse & make the true and more significant price break-out in the opposite trend direction.

Traders reacting quickly on the initial price break out often get caught up on wrong side of the price action - while those traders expecting a "false break out" can quickly closeout their original trade positions & enter a trade in the direction of price reversal. It is always good to combine Bollinger bands indicator with other confirmation technical indicators.

Best Bollinger Bands for 1 Hour Chart - Best Bollinger Band for 4H XAUUSD Chart - Best Bollinger Band for Daily XAU/USD Chart - Best Bollinger Band for 15 Minutes Chart - Best Bollinger Band for 5 Min Chart

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