Best Bollinger Bands for 4 H XAUUSD Chart

How Do I Add Bollinger Band Indicators on MetaTrader 4 XAUUSD Charts

Step 1: Open Navigator Window on Trading Platform

Open Navigator window as shown below - Go to 'View' menu (then click it) & then select 'Navigator' panel window (click), or From the Standard Tool Bar click the 'Navigator' button or press the key-board short cut keys 'Ctrl+N'

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

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Step 2: Expand Indicators Menu on the Navigator

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

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How to Add Custom Bollinger Bands Indicator to Meta Trader 4

If the technical indicator you as the trader want to add is a custom Bollinger Bands indicator - for example if the Bollinger Bands technical indicator you want to add is a custom indicator you will need to first add this custom Bollinger Bands indicator on the MT4 platform & then compile custom Bollinger Bands indicator so that the newly added Bollinger Bands custom indicator pops up on the list of custom technical indicators on the MT4 platform.

To learn how to install Bollinger Band indicator on MT4, how to add Bollinger Bands indicator panel window to MetaTrader 4 and how to add Bollinger Band custom indicator in MetaTrader 4 - How Do I add a custom Bollinger Bands indicator in MetaTrader 4.

Bollinger Bands Technical Indicator Explained

Bollinger Bands Analysis & Bollinger Band Signals

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

Bollinger bands indicators are then plotted at a distance away from the moving average technical indicator. These are the bands which form the lower & 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, and since Bollinger band lines are drawn using the standard deviation the distance of the Bollinger bands will keep on adjusting themselves to the market volatility.

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

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

This middle Bollinger Bands 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 price market volatility. The upper band of this indicator is plotted at +2 standard deviations above the mid Bollinger Band while the lower band is plotted at -2 standard deviations below the mid Bollinger Band.

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Bollinger Bands Analysis & How to Generate Gold Bollinger Band Signals

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

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

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

the Bollinger Band Squeeze

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

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the Bollinger Band Bulge

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

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Bollinger Bands 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 Band Whipsaw

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

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Price often breaks-out in one particular direction immediately following the Bollinger Bands 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 opposite market direction.

Traders acting quickly on the initial price break out often get caught on the 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 Band for 1 Hour Chart - Best Bollinger Bands for 4H XAUUSD Chart - Best Bollinger Bands for Daily XAUUSD Chart - Best Bollinger Bands for 15 Minute Chart - Best Bollinger Bands for 5 Min Chart

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