Bollinger Bands vs Envelope Indicator for MetaTrader 4 - Free Download [TradingFinder]

The Bollinger Bands and Envelopes indicator combines Bollinger Bands and Envelopes to analyze price action based on: moving averages .

Bollinger Bands determine market volatility by calculating the standard deviation around a moving average, while envelope lines draw channels above and below the moving average to indicate the range of potential price movements.

Bollinger Bands and Envelope Indicators Table

The general specifications of Bollinger Bands and Envelope indicators are as shown in the table below:

Overview of Bollinger Bands and Envelope Bands Indicators

The Bollinger Bands and Envelopes indicator changes candle color and generates buy or sell signals based on the price position relative to the Bollinger Bands and Envelope channels.

• Blue Candle (Buy Signal) : Occurs when the price stabilizes within the lower range of the envelope or Bollinger Bands and then the candle closes with a real bullish close;
• Red Candle (Sell Signal) : Occurs when the price is at the upper limit of the envelope or Bollinger Bands and the bearish candle closes with a real body.

bullish trend indicator

In this indicator, when the price reaches the Bollinger Bands or Envelope Channel lower limit and the bullish candle closes for the real body, the candle is shown in blue.

This color is recognized as a buy signal and defines a suitable area to enter a long position.

Bearish trend indicator

When the price reaches above the Bollinger Bands or Envelope Channel and the bearish candle close has a real body, the color of the candle changes to red.

This color change signals the activation of a sell signal and the beginning of a downtrend.

Bollinger and Envelopes indicator settings

The image below shows the settings panel of the Bollinger Bands and Envelope indicators:

• Bollinger Band Cycle : Shows the cycle of Bollinger Bands
• Bollinger Bands Movement : Bollinger Bands Movement
• Bollinger Bands Application Price : The price type applied in Bollinger Bands
• Bollinger Bands Deviation : Displays the standard deviation of Bollinger Bands
• MA Period : Displays the period of the moving average
• MA Shift : Movement of the moving average
• MA Applied Price: The price type applied in moving averages
• MA Deviation : Displays the deviation of the moving average

Conclusion

The Bollinger Bands and Envelope Bands indicator is a combination of two powerful moving average-based tools that display dynamic support and resistance levels .

This trading tool generates buy and sell signals by changing the candle color to blue or red, allowing for trend analysis across multiple timeframes.