Bands Band Width 2 Indicator

Bands Band Width 2 Indicator

Bands Band Width 2 Indicator For MT4 measures the diffence between Bollinger bands in pips and helps forex traders identify a squeeze pattern effectively

The Bands Band Width 2 Indicator for MT4 measures the distance between the Bollinger bands indicator in pips. Bollinger bands squeeze is a very effective forex trading strategy. It indicates that if the bands contract due to low volatility then a huge market movement is due and may follow after the squeeze. Since, this indicator measure the distance in pips it helps forex traders to identify a squeeze and to anticipate higher volatility.

This indicator is modified to display the bandwidth, so new and advanced forex traders using Bollinger bands will find very useful. Furthermore, it works effectively on all intraday chart time frames as well as the daily, weekly and monthly price charts.

Bands Band Width 2 Indicator For MT4 Trading Signals

The indicator plots the outer Bollinger bands as purple with a yellow mid line. Additionally, the indicator plots the current Bollinger bands bandwidth in pips on the left top chart corner. This indicator does not provide market direction or forex trading signals. However, the primary objective of the indicator is to identify a squeeze pattern.

Traders could identify a squeeze if the band width is falls lower than a minimum number of predefined pips. Since this value depends on different currency pair’s traders should identify them accordingly. Once a squeeze pattern appears traders should use other technical indicators, price action or chart pattern to identify the trend direction.

Generally, a squeeze pattern is followed by increased market volatility. Often the squeeze pattern is due to the result of inactivity or indecision due to a pending economic release or important data. So, traders should use this indicator to identify a squeeze.

Conclusion
In summary, the Bands Band Width 2 indicator for MT4 is an essential tool for forex traders using Bollinger bands squeeze technique.