BBands Stop v1 MT4

Currency Pairs: Any

Timeframes:  Any

Minimum Deposit: Any

Recommended Account Type: ECN or Raw Spread

Leverage: From 1:30 to 1:1000

Recommend broker: Roboforex
Recommend Vps: GoVPSFX
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BBands Stop v1 indicator for MetaTrader 4 (MT4) is a modified version of the classic Bollinger Bands indicator, adapted to determine a change in trend and set stop orders. It belongs to the category of trend indicators and is easy to use and clear, although it requires additional filters for working in a sideways market.

Main characteristics:
1. Visualization: The indicator displays dots on the chart (green for buys, orange for sells), connected by segments of the corresponding color. The dots are located above or below the price, reminiscent of the behavior of the Parabolic SAR indicator.
2. Signals:
– Green dots indicate an uptrend (buy signal).
– Orange dots signal a downtrend (sell signal).
– The color changes when the price crosses the Bollinger Bands levels, which indicates a trend reversal.
3. Stop orders: The dots serve as reference points for setting stop losses – they should be placed outside the dots (below the green ones for buys, above the orange ones for sells).
4. Market response: The indicator is effective in conditions of a pronounced trend, but can generate false signals during a flat (sideways movement).

Operating principle:
The indicator is based on a modification of Bollinger Bands, which measure volatility and trend direction through a moving average and standard deviation. BBands Stop v1 simplifies interpretation by replacing the bands with dots that react to price intersections with the band boundaries. This helps traders visually identify trend reversals and manage risks.

Settings:
– Length: Determines the speed of the indicator’s reaction to a trend change. Small values ​​(for example, 10-20) are suitable for scalping, large ones (50 and above) are for long-term trading.
– Deviation: Sets the deviation of the indicator from the price. At 0, it behaves like a moving average.
– MoneyRisk: Increases the distance between the indicator and the price, which affects the size of the stop loss.

How to trade:
1. Buy: Open a long position after the first green dot appears after the candle closes. Set the stop loss below the last green dot and use a trailing stop to lock in profits.
2. Sell: Open a short position at the first orange dot after the candle closes. Set the stop loss above the last orange dot, moving the trailing stop behind the indicator.
3. Filtration: Due to false signals in the sideways, it is recommended to use additional indicators (for example, oscillators like RSI or flat indicators) to confirm the trend.