How To Apply Bollinger Bands® With Metatrader 4: Customizing Bollinger Bands®
  1. How To Apply Bollinger Bands® With Metatrader 4: Introduction
  2. How To Apply Bollinger Bands® With Metatrader 4: Understanding Bollinger Bands®
  3. How To Apply Bollinger Bands® With Metatrader 4: Using Bollinger Bands®
  4. How To Apply Bollinger Bands® With Metatrader 4: Customizing Bollinger Bands®
  5. How To Apply Bollinger Bands® With Metatrader 4: Editing Bollinger Bands®

How To Apply Bollinger Bands® With Metatrader 4: Customizing Bollinger Bands®

Customizing Bollinger Bands®
Regardless of the method used to attach Bollinger Bands® to a price chart, the Bollinger Bands® window will appear. This window has three different tabs that allow traders to customize the appearance and performance of the indicator:

1. Parameters

2. Levels

3. Visualization


The "Parameters" tab, shown in Figure 5, allows traders to customize several inputs:

  • Period - the length of the simple moving average (middle band). By default, this is set to 20.
  • Shift - the offset of the indicator. By default, this is set to zero, representing no shift.
  • Deviations - the number of standard deviations to be used in the upper and lower band calculations. By default, this is set to 2.
  • Apply to - the price data that will be used in the calculations. By default, this is set to Close. Other choices include Open, High, Low, Typical Price and Weighted Close.
  • Style - the color, line style and line weight of the indicator.

Figure 5: The Bollinger Bands® Parameters tab.


SEE: How Market Psychology Drives Technical Indicators

The "Levels" tab, shown in Figure 6, allows traders to change the colors of the upper and lower bands, or include additional bands to the indicator. To change the colors of the upper and lower bands:

  • Click Add, double-click in the Level field, and enter "1". Enter a name for the level in the description field (such as "Upper").
  • Click Add again to add a second level. This time enter "-1" (negative 1). Enter a name in the description field.
  • Choose the Style - color, line style and line weight.
  • Click "OK" to close the window.
The upper and lower bands will now appear in the new color.


Figure 6: Traders can change the colors of the upper and lower bands in the Levels tab.


SEE: Technical Analysis: Indicators and Oscillators

To add more bands to the indicators, enter the desired level(s) in the Level field, along with a name in the Description field. To create bands that are not based on integer values, such as bands based on the Fibonacci number 1.618:

  • Set the Standard Deviations in the "Parameters" tab to 1 with no color (select "None" in the color drop-down menu).
  • In the "Levels" tab, add Levels as 1.618 and -1.618 (or any other values; these values represent the Fibonacci-based bands) and select the desired Style settings.
  • To add a middle line, add a Level at 0.
  • Click "OK" to close the window.
The "Visualization" tab, shown in Figure 7, is used to specify to which timeframe(s) the Bollinger Bands® indicator will be anchored. This can be done so that the indicator's settings (such as color and Standard Deviations) will not have to be set with each new timeframe. Check "All Timeframes" to specify that the indicator and its settings will appear on any chart when toggling between different timeframes. Alternatively, select specific timeframes to limit Bollinger Bands® to those timeframes.


Figure 7: Traders can specify to which timeframes the Bollinger Bands® indicator will be attached by making selections in the "Visualization" tab.


How To Apply Bollinger Bands® With Metatrader 4: Editing Bollinger Bands®

  1. How To Apply Bollinger Bands® With Metatrader 4: Introduction
  2. How To Apply Bollinger Bands® With Metatrader 4: Understanding Bollinger Bands®
  3. How To Apply Bollinger Bands® With Metatrader 4: Using Bollinger Bands®
  4. How To Apply Bollinger Bands® With Metatrader 4: Customizing Bollinger Bands®
  5. How To Apply Bollinger Bands® With Metatrader 4: Editing Bollinger Bands®


RELATED TERMS
  1. Golden Cross

    A crossover involving a security's short-term moving average ...
  2. Cup and Handle

    A pattern on bar charts resembling a cup with a handle. The cup ...
  3. Dead Cat Bounce

    A temporary recovery from a prolonged decline or bear market, ...
  4. Confirmation

    The use of an additional indicator or indicators to substantiate ...
  5. Fintech

    Fintech is a portmanteau of financial technology that describes ...
  6. Indicator

    Indicators are statistics used to measure current conditions ...
RELATED FAQS
  1. What is Fibonacci retracement, and where do the ratios that are used come from?

    Fibonacci retracement is a very popular tool among technical traders and is based on the key numbers identified by mathematician ... Read Full Answer >>
  2. What are some of the most common technical indicators that back up Doji patterns?

    The doji candlestick is important enough that Steve Nison devotes an entire chapter to it in his definitive work on candlestick ... Read Full Answer >>
  3. Tame Panic Selling with the Exhausted Selling Model

    The exhausted selling model is a pricing strategy used to identify and trade based off of the price floor of a security. ... Read Full Answer >>
  4. Point and Figure Charting Using Count Analysis

    Count analysis is a means of interpreting point and figure charts to measure vertical price movements. Technical analysts ... Read Full Answer >>
  5. What assumptions are made when conducting a t-test?

    The common assumptions made when doing a t-test include those regarding the scale of measurement, random sampling, normality ... Read Full Answer >>
  6. How are double exponential moving averages applied in technical analysis?

    Double exponential moving averages (DEMAS) are commonly used in technical analysis like any other moving average indicator ... Read Full Answer >>
Hot Definitions
  1. Presidential Election Cycle (Theory)

    A theory developed by Yale Hirsch that states that U.S. stock markets are weakest in the year following the election of a ...
  2. Super Bowl Indicator

    An indicator based on the belief that a Super Bowl win for a team from the old AFL (AFC division) foretells a decline in ...
  3. Flight To Quality

    The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This ...
  4. Discouraged Worker

    A person who is eligible for employment and is able to work, but is currently unemployed and has not attempted to find employment ...
  5. Ponzimonium

    After Bernard Madoff's $65 billion Ponzi scheme was revealed, many new (smaller-scale) Ponzi schemers became exposed. Ponzimonium ...
  6. Quarterly Earnings Report

    A quarterly filing made by public companies to report their performance. Included in earnings reports are items such as net ...
Trading Center