Bollinger Bands vs Envelope Indicator for MetaTrader 5 - Download [TradingFinder]

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

Bollinger Bands use standard deviation to measure market volatility around a moving average, while envelopes create parallel channels above and below the moving average to outline the range of potential price movements.

Bollinger Bands and Envelope Indicators Table

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

Overview of Bollinger Bands and Envelope Bands Indicators

The Bollinger Bands and Envelopes indicator checks the price position relative to the Bollinger Bands and Envelope channels and generates entry or exit signals by changing the candle color as shown below:

• Blue candle (buy signal) : activated when the price stabilizes at the lower limit of the channel or envelope channel and the real bullish candle closes;
• Red Candle (Sell Signal) : Formed when price is at the upper limit of a channel or envelope channel and the real bearish candle closes.

bullish trend indicator

In this indicator, the candle color changes to blue when the price reaches the Bollinger Bands or envelope channel lower limit and the real bullish candle closes.

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

Bearish trend indicator

In this indicator, when the price reaches above the Bollinger Bands or Envelope Channel and displays a real bearish candle, the candle color changes to red.

This color change activates the sell signal and identifies the start of a downtrend.

Bollinger Bands and Envelope indicator settings

The image below shows the settings panel of the Bollinger Bands and Envelope indicators in the MetaTrader 5 platform:

• 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 the moving average
• MA Deviation : Displays the deviation of the moving average

Conclusion

The Bollinger Bands and Envelope Bands indicator is a combination of two moving average-based tools that can draw support and resistance levels on dynamic charts.

By changing the candle color to blue or red, this indicator sends buy and sell signals and supports trend analysis across multiple time frames.