Sigma Band - MetaTrader 4 Script | Forex Indicator Download - MT4/MT5 Resources - MetaTrader 5 Resources

Essentially, this is an advanced version of Bollinger Bands

Specifically, in this indicator I study the price movement of a certain number of bars ( number of bars = 200 ). For this purpose, an MA with period 1 ( MAP period ) is used. For this matter, any moving average and any number of bars can be used for analysis. As a result, two channels will be drawn. It shows the limit of price fluctuation for a specified number of bars 68% of the time. The other shows the limit of price movement during 95% of the time for a specified number of bars.

Sigma Bands with default parameters are almost identical to Bollinger Bands with the same period, equal to the bar count. But this version is not only able to draw Bollinger Band numbers by changing any period, but the plot is also based on the MA type of any period chosen.

Supported MA types:

Prices available for drawing channels:

All these settings do not work with standard Bollinger Bands.

By learning how to determine the limits of any indicator or price range most of the time, I ended up making an example of calculating the standard deviation and sigma realized as that indicator. Its formula can now be adapted to any metric you like. Sometimes interesting results can be obtained for indicators plotted in separate windows, such as RSI, TV Index or others.

suggestion:

The difference between traditional Bollinger Bands and Sigma Bands is only when using non-default settings and averaging period > 1 .

Attachment download

📎 sigma_bands.mq4 (5.42 KB)

Source: MQL5 #16198